MPs Accuse Poundland Owner Gordon Brothers of Siphoning Millions as Chain Teetered

Poundland's management will ask the high court on Thursday morning for a two-week extension of legal protection from creditors. Directors want a further 10 working days' grace. Without that shield, the chain is likely to call in administrators, with advisory firm Alix Partners already lined up. Poundland filed a notice of intention to appoint administrators two weeks ago.

Liam Byrne, chair of the Commons business select committee, said he was left deeply concerned that Gordon Brothers' behaviour may have jeopardised thousands of jobs on Britain's high streets. His remarks followed almost two hours of private evidence on Wednesday afternoon from Mark Newton-Jones, the European head of Gordon Brothers. Byrne said the firm had taken millions out of Poundland over the last 17 months while the business was on a knife-edge, and that it refused to say it would prioritise saving jobs over its own financial returns.

Gordon Brothers has released £10m more in funds to help Poundland secure new stock and keep trading, and is understood to be supportive of the extension. The owner has said Poundland remains challenged and vulnerable to any potential downturn in future trading.

Sources say Poundland is still trading well, with sales up year on year, but it has only enough cash to support the business for a short period. Gordon Brothers is in talks with three potential bidders for the entire chain, though it has indicated it could raise more by breaking Poundland up, selling off stock and parcels of stores to rival retailers. The bids are understood to be worth less than the £30m in debts taken on by shareholders.

Gordon Brothers bought Poundland for a nominal £1 from the European retail group Pepco in June 2025. Pepco still holds £7.5m of that £30m shareholder debt and is prepared to wait for repayment in the hope of saving the business. Martin Property Group, the Northern Irish family-owned firm backing a management-led rescue bid led by Barry Williams, had its first offer rejected because it amounted to no more than half the £30m Gordon Brothers wants, with less than £7m up front. A little-known finance company, Xyra Group, is thought to have offered about £12m up front and close to £30m in total, despite having no previous involvement with retail businesses.