Retailer’s management to seek two-week extension of legal protection from creditors in high court
MPs have accused the owner of Poundland of extracting millions of pounds from the budget retailer when it was on a “knife-edge” as it seeks extra time to secure a rescue deal.
The management of Poundland, which employs 12,000 people and operates 600 stores in the UK and Ireland, will seek a two-week extension of legal protection from creditors from the high court on Thursday morning.
The budget chain’s owner, Gordon Brothers, is under pressure to accept a bid for the company that would save retail jobs and protect thousands of suppliers. Poundland filed a notice of intention to appoint administrators two weeks ago.
The legal measure protects Poundland from the demands of creditors until Thursday morning while a solution to its problems is sought.
Directors of Poundland are now seeking a further 10 working days’ grace, which must be approved by the high court. That comes after Gordon Brothers, which is understood to be supportive of the extension, released £10m more in funds to help Poundland secure new stock and keep trading.
Without the legal protection in place, Poundland is likely to have to call in administrators; the advisory firm Alix Partners is already lined up.
