Poundland secures £10m lifeline to delay UK store collapse
High street discounter Poundland has gained a crucial reprieve and emergency funding, pausing insolvency fears for 11,000 workers across 600 stores.
Discount chain Poundland looks set to avoid immediate collapse after its US owners agreed to extend a deadline to find a rescue deal. The move temporarily protects 11,000 jobs across 600 high street shops in the UK.
The retailer neared insolvency after investment firm Gordon Brothers, which bought the business for £1 last year, froze £50m in bank accounts. Sources told the BBC that releasing £10m in emergency funding will postpone collapse while a buyer is sought ahead of Christmas.
MPs questioned Gordon Brothers over allegations that the firm aimed to profit by selling stores piecemeal. While the owners denied the accusations, political leaders, including Prime Minister Andy Burnham, demanded swift measures to protect workers.
Source: BBC News
