Poundland faces administration as owner rejects rescue bid

Poundland has filed a notice of intent to appoint administrators after its owner, Gordon Brothers, rejected an offer to buy the discount retailer as a going concern, putting around 12,000 jobs at risk, according to the Financial Times.

While Martin Property Group had submitted a rescue proposal, the deal failed to move forward. The notice gives Poundland’s creditors 10 business days of protection while the company seeks a solution, with AlixPartners setup to act as administrators if necessary.

UK Prime Minister Andy Burnham has called for an explanation as to why the offer was rejected, telling the Financial Times: “This is a deeply worrying time for Poundland staff and their families.” He added that the government wanted to see jobs protected.

The retailer has faced increased pressure from competitors including Aldi, Lidl, and Home Bargains. Gordon Brothers acquired Poundland for less than one pound in 2025 and launched a sale process. The media outlet reported that demand for bidders to repay a 30 million pounds shareholder loan had deterred potential buyers.

Poundland posted an 85.2 million pound loss for the year to September 2025, on revenue of 1.5 billion pounds. However, managing director Barry Williams recently told suppliers that like-for-like sales rose 6.7 percent in September. The company currently operates around 640 UK stores and a distribution centre in Greater Manchester.