Poundland files notice to appoint administrators, putting 12,000 UK jobs at risk

Notice filed and breathing space

Poundland has filed a notice of intention to appoint administrators at the High Court, according to court documents. The filing gives the business 10 working days of breathing space from creditors to secure a potential rescue deal. A court decision on the notice was expected on Thursday, though one report said it had yet to be approved. The chain employs about 12,000 people and runs around 600 stores across the UK, including Dealz outlets in Ireland, although the Financial Times puts the store count at 640. Managing director Barry Williams told staff in a memo that the situation was "unexpected, unwanted and wholly avoidable" and that the owner had limited the chain's access to funding. AlixPartners is understood to be lined up to act as administrators, while Alvarez & Marsal was hired in August to oversee the sale.

How the sale unravelled

Gordon Brothers bought Poundland from the Polish retail group Pepco in June 2025 for £1 and launched a sale process at the start of September. Management named Martin Property Group as its preferred bidder earlier in October, but Gordon Brothers rejected that offer. Martin's bid was worth less than the £30m in debts Gordon Brothers took on when it bought the chain. Gordon Brothers also wants bidders to cover a shareholder loan it inherited from Pepco at no cost, a demand the Financial Times says has deterred suitors. The owner has also restricted a key credit line it was providing to the retailer. In a statement, Gordon Brothers said the sale had drawn offers for significant viable parts of the business:

“These options will now be objectively evaluated, with a view to minimising uncertainty for Poundland's people and all relevant stakeholders.”

Buyers for parts and jobs

Several retailers are reportedly interested in buying parts of the business. CDS Superstores, owner of Wilko and The Range, Fortress, which owns Poundstretcher, and Modella, owner of TG Jones, are all understood to be interested, while B&M is also reportedly considering some stores. Fortress is thought to want less than half of Poundland's stores to add to its existing chain. Gordon Brothers is understood to believe it can raise more from breaking up Poundland than from the Martin offer. Andy Bond, the former Asda boss who ran Poundland from 2016 and later worked for the parent company, took part in negotiations to take on the business alongside Williams.

Government scrutiny and what comes next

Ministers were reportedly seeking to establish whether Gordon Brothers was unnecessarily forcing Poundland into administration. The collapse would be keenly felt in Makerfield, the constituency of Prime Minister Andy Burnham, where the retailer operates a distribution centre. The 10 working days will decide whether a rescue buyer emerges for the whole business. If no whole-business deal is agreed, AlixPartners would act as administrators and parts of the store estate could be divided among other retailers. Shop workers face uncertainty in the run-up to Christmas, and any store sales could protect some jobs.