PM says staff will be supported as Poundland teeters on the edge of collapse
Company files for administration but Burnham wants answers
Staff at Rotherham’s branch of Poundland are still living with uncertainty after the company’s bosses filed to appoint administrators at the High Court yesterday.
Now Prime Minister Andy Burnham has waded into the row with a pledge to ‘support’ staff as the business teeters on the brink of collapse.
The filing in the High Court means that creditors cannot call in debts for the next ten business days.
It is believed that AlixPartners will act as administrators to the business if a rescue deal doesn’t happen.
Recent rescue talks with Irish firm Martin Property Group came to nothing and PM Burnham has demanded to know why that offer to buy was not accepted by Poundland owners private equity firm Gordon Brothers who purchased the business last June for £1 from Pepco.
Mr Burnham - who has a Poundland distribution centre in his Makerfield constituency - told the BBC: “This is a deeply worrying time for Poundland staff and their families.”
He added: “We want to see jobs protected. If there was a potential owner to avoid this that hasn't been accepted, then the business secretary and I want to know why that is the case.
“We stand ready to support the workforce however we can.”
Rotherham’s supersized store is at the Parkgate Shopping Centre on Stadium Way.
Poundland previously announced that it would shut 68 stores in 2025.
Some reports have suggested that rivals Poundstretcher, B&M and Lidl may be interested in snapping up stores.