Poundland faces an increased risk of collapse after three directors appointed to oversee its sale reportedly prepared to resign following a dispute with majority owner Gordon Brothers, according to Sky News.
The directors, appointed on 15 October, are understood to have raised concerns about Gordon Brothers’ decision not to accept a solvent takeover offer from Martin Property Group, which has been working with Poundland’s management team on a potential rescue deal.
The dispute raises the prospect of administration, potentially putting thousands of jobs at risk. However, hopes of a rescue could be revived if a revised offer is submitted within the next 48 hours.
Martin Property Group has proposed acquiring the whole business in a solvent deal designed to keep stores open and protect jobs. The proposal reportedly includes full repayment of a £30 million shareholder loan owed to Gordon Brothers, which acquired Poundland for a nominal £1 in June 2025.
Gordon Brothers is understood to believe the loan is more likely to be repaid in full if Poundland is broken up. Potential buyers reportedly interested in parts of the business include B&M, The Range and Poundstretcher. Irish company Innovest Holdings is also reportedly pursuing a solvent bid, although its funding remains unclear.
Gordon Brothers said the sale process had attracted offers for the whole business and “significant viable parts of the business from established retail operators”. It added that these options would be evaluated with a view to minimising uncertainty for employees and stakeholders.
Alvarez & Marsal has been overseeing the sale process since September, although it remains unclear whether the firm would be appointed as administrator if the retailer enters insolvency proceedings.
Poundland operates around 600 stores across the UK and Ireland and employs around 12,000 people. Its future remains uncertain despite recent signs of improvement in trading.
In October, the retailer reported like-for-like sales growth of 3.3% in the quarter to 27 September, rising to 6.4% after adjusting for product categories removed during its restructuring.
The retailer’s previous restructuring closed nearly 150 stores and resulted in around 2,200 job losses.