The Government has been put on alert over the risk of thousands of job losses at Poundland.<\/p>\n
Union officials have sounded out Downing Street and the business department over concerns that the retailer\u2019s future remains clouded by uncertainty after owner Gordon Brothers unexpectedly put it up for sale.<\/p>\n
The sale process has fuelled speculation of a potential break-up of the discounter, which could threaten thousands of jobs and leave suppliers out of pocket.<\/p>\n
The move is likely to raise concerns in Government before John Healey\u2019s maiden Budget on Wednesday.<\/p>\n
A string of candidates has emerged as potential buyers, but only a handful have put forward offers for the entire business, which covers roughly 600 stores and 12,000 workers in the UK and Ireland.<\/p>\n
This includes Irish investment firm Innovest Holdings, which The Telegraph can reveal has submitted a solvent offer for the entirety of Poundland.<\/p>\n
Innovest Holdings does not currently own any assets in Britain but previously tabled an offer for Dublin Airport car park and the bakery division of 2 Sisters Food Group.<\/p>\n
It is run by Shane Corby, an Irish businessman. Mr Corby will now compete against rival bids from Ireland\u2019s Martin Property Group, which owns shopping centres and hotels, and the current Poundland management team.<\/p>\n
\u2018Deep concerns\u2019\u00a0<\/p>\n
The uncertainty has emerged despite strong trading for the retailer.<\/p>\n
In a private update aimed at reassuring suppliers on Thursday, bosses revealed that Poundland achieved sales growth of 6.7pc in September.<\/p>\n
This has since been followed by 8.4pc growth in the first three weeks of October.<\/p>\n
Bosses said sales, margin and gross profit were all running above expectations.<\/p>\n
Barry Williams, Poundland\u2019s chief executive, has spearheaded turnaround efforts and has since teamed up with Andy Bond, the former Asda boss, to pursue a takeover.<\/p>\n
Union officials have alerted both Downing Street and the Business Department over Poundland\u2019s future.<\/p>\n
They hope the issue may capture Andy Burnham\u2019s attention because Poundland\u2019s biggest distribution centre is based in the Prime Minister\u2019s Makerfield constituency.<\/p>\n
Usdaw, which represents 370,000 retail workers, is poised to hold urgent talks with Gordon Brothers next week after raising \u201cdeep concerns\u201d over the company\u2019s future.<\/p>\n
Bally Auluk, national officer at Usdaw, warned earlier this month that the company could go into administration imminently.<\/p>\n
However, the company later rejected the claim as speculation.<\/p>\n
Gordon Brothers tasked Alvarez & Marsal with launching Poundland\u2019s sale process in September, just more than a year after buying the business from Pepco.<\/p>\n
The abrupt and accelerated auction has since prompted speculation that Gordon Brothers may favour selling the business piecemeal as part of a break-up.<\/p>\n
As part of any sale, the firm is demanding full repayment of a \u00a330m shareholder loan, which it acquired for just \u00a31 as part of its original buyout.<\/p>\n
Gordon Brothers could leverage this debt to trigger an administration process if a sale isn\u2019t achieved.<\/p>\n
Turnaround firm Modella Capital, retailer B&M, Poundstretcher owner Fortress and The Range\u2019s CDS Superstores have all expressed plans to buy at least some stores.<\/p>\n
A Gordon Brothers spokesman said: \u201cActive discussions continue with a number of potential acquirers\u201d.<\/p>\n
They added: \u201cThe board will now objectively evaluate these options, considering all relevant stakeholders, with a view to minimising uncertainty for the people, suppliers and local communities with an interest in the business and its future.\u201d<\/p>\n
A Poundland spokesman added: \u201cWe understand these kinds of sale processes often lead to significant concern and speculation \u2013 much of it wide of the mark. We have always had an open door to Usdaw and they know we\u2019re focused on the recovery that\u2019s now firmly embedded in the business.\u201d<\/p>\n
Alvarez & Marsal declined to comment.<\/p>\n","protected":false},"excerpt":{"rendered":"The Government has been put on alert over the risk of thousands of job losses at Poundland. Union…\n","protected":false},"author":2,"featured_media":893907,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,7255,101,158029,374822,615],"class_list":["post-893906","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-companies","tag-economy","tag-poundland","tag-retail-and-consumer-industry","tag-standard"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/893906","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=893906"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/893906\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/893907"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=893906"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=893906"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=893906"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}