Future for Rotherham Poundland staff remains uncertain after firm files for insolvency
Founder and business minister both wade into row
Employees at Rotherham’s branch of Poundland remain in a state of limbo as the uncertainty continues over the company’s future.
Last week, the business - which has a supersized store at the Parkgate Shopping Centre on Stadium Way - filed to appoint administrators at the High Court.
It came as Prime Minister Andy Burnham pledged to ‘support’ staff as the business teeters on the brink of collapse.
The filing in the High Court meant that creditors could not call in debts for ten business days.
It is believed that AlixPartners will act as administrators to the business if a rescue deal does not happen.
Now, Poundland founder Steve Smith has become involved and reportedly tried to contact owners Gordon Brothers, a private equity firm which purchased the business last June for £1 from Pepco.
The BBC has also reported that that business minister Kate Dearden is set to meet Poundland executives this week to discuss the company’s future.
Recent rescue talks with Irish firm Martin Property Group came to nothing and Gordon Brothers has been accused of wanting to sell off bits of the business in preference to the whole operation.
Some reports have suggested that rivals Poundstretcher, B&M and Lidl may be interested in snapping up stores.