Ministers to hold urgent talks with Poundland chiefs

The government is to hold an urgent meeting with Poundland bosses amid growing recriminations over the discount retailer's ownership.

Sky News has learnt that Kate Dearden, minister for the future of work, has requested a meeting with Barry Williams and Shaun Wills, Poundland's chief executive and finance chief, respectively.

Whitehall sources said they were expected to meet within days, with the objective of discussing potential ways to avert the chain's collapse.

The talks will take place with Poundland hurtling towards insolvency after its directors were forced to file a notice of intention to appoint administrators last week - despite strong momentum in current trading at the retailer.

Poundland's collapse would put more than 10,000 jobs at the company at risk, and threaten the closure of hundreds of stores, deepening the pain on Britain's high streets.

Sky News revealed last week that Martin Property Group, which has been attempting to negotiate a solvent rescue of the business, remains interested in buying it from Gordon Brothers, which has owned Poundland for just over a year.

Gordon Brothers is now facing urgent questions from across the political spectrum about its stewardship of Poundland, including whether it has deliberately steered the company to the brink of administration.

Jonathan Reynolds, the business secretary, told the Telegraph on Monday: "If it is true that there was a bid on the table that would have avoided the risk of administration, then the ownership has serious questions to answer and I want to know urgently why that bid wasn't accepted."

Gordon Brothers' resistance to a solvent deal appears to relate to uncertainty over its demand for the full and immediate repayment of a £30m shareholder loan.

Martin Property Group has offered to repay it in full when it falls due in 2030, or half of it sooner.

Pepco Group, Poundland's former owner, has offered to defer its £7.5m share of that loan if a solvent deal can be struck, Sky News reported on Friday.

MPG's reconfirmed offer is backed by a number of leading Poundland suppliers, who face losing substantial sums of money if the chain falls into administration just weeks before the crucial festive trading period.

The alternative would be a break-up of the business, with several hundred of Poundland's roughly 600 stores likely to be acquired by rival retailers such as B&M, Iceland and Aldi.

However, that could still leave thousands of the chain's roughly 10,500-strong workforce being made redundant just weeks before Christmas.

MPG's bid includes preserving all of Poundland's existing stores and workers, according to insiders.

Interest from Andy Burnham, the prime minister, and other ministers is likely to pile pressure on US-based Gordon Brothers to consider waiving part or all of its rights over the loan.

Even after a store closure programme triggered by its sale last year, Poundland remains one of the biggest general merchandise retailers in the UK.

Its collapse would be the biggest on the high street for years and easily the most politically fraught since BHS's demise in 2016.

Last Thursday, Alvarez & Marsal (A&M), the firm which has been running an auction of Poundland, issued a statement attributed to Mr Williams saying that "despite enormous efforts, it has not been possible to identify an acceptable offer for the business as a whole".

Within hours, the statement had been reissued, but this time attributed to the board of the company.

Mr Williams and his finance chief, Shaun Wills, are said to have insisted on ensuring that staff would be paid this week, despite having their efforts to secure a solvent deal in conjunction with MPG thwarted by Gordon Brothers.

Last week, a trio of restructuring heavyweights resigned as Poundland directors within a fortnight of their appointment in protest at Gordon Brothers' efforts to steer the chain towards insolvency.

Gordon Brothers is understood to have restricted access to the company's finances, effectively preventing its management team from making routine payments.

The Department for Business, Innovation, Science and Trade declined to comment on Monday, while Gordon Brothers could not be reached for comment.

(c) Sky News 2026: Ministers to hold urgent talks with Poundland chiefs