UK government pressures Gordon Brothers over Poundland rescue bids

Martin Property Group’s fully funded bid is for the whole company

On Tuesday, UK parliamentarians pressed Gordon Brothers to accept a solvent bid for the budget retailer Poundland after its owners filed notice at the High Court of their intention to appoint administrators last Thursday, October 29, 2026. Gordon Brothers, a US restructuring specialist that acquired Poundland for £1 last year, controls Poundland, has not accepted the buyout offers and has lined up advisory company AlixPartners to run the process. Poundland’s 12,000 jobs and the future of its stores remained uncertain as suppliers held back deliveries, hurting the chain’s ability to trade.

MPs called on the government to protect Poundland and other high-street stores from what they described as “predatory capitalism” and asset-stripping.

Gareth Snell, Labour MP for Stoke-on-Trent Central, used an urgent question in the House of Commons to ask what the government could do to “send a message to Gordon Brothers that the predatory capitalism that they are putting into this company will not be tolerated, because we in this country will always stand with people before profit.”

Another Labour MP, Antonia Bance, asked what measures the government would use to “hold Gordon Brothers to account” and whether it would “establish an urgent review of whether our corporate governance and insolvency frameworks give sufficient protection against asset stripping and short term financial engineering, at the cost of jobs and our high streets?”

The Green party MP Hannah Spencer said the “scandal” of Poundland “exposes a very serious problem, that our economy is vulnerable to private equity vultures who swoop in and prey on our high street brands by loading them with debt and then trying to ditch them for a profit.”

Dozens of MPs from around the UK called on the government to reassure their constituents that action would be taken to stop Poundland’s collapse.

Kate Dearden, minister for the future of work, told MPs that government officials had held talks with Gordon Brothers on Monday night. She said she would meet Poundland’s management team and Usdaw, the shop workers’ union, on Wednesday, while business secretary Jonathan Reynolds would meet Gordon Brothers again later in the week.

Dearden said the government could not involve itself in the “commercial negotiations” with potential buyers or comment on individual bids. She nevertheless said the government was “taking a responsible approach not to sit by and do nothing” and was pressing Gordon Brothers to recognize its “responsibilities as well as rights” over Poundland and its employees.

Gordon Brothers is understood to remain in talks with at least two potential buyers for the whole company. One offer, from Northern Ireland’s Martin Property Group, is fully funded. Another, from Innovest, an investment group, is believed to have partial funding in place. Innovest is understood to be advised by former Reform election candidate Charles Bunker.

Gordon Brothers is believed to be unwilling to accept Martin Property’s offer of about £15m, only half of which would be paid immediately, because it falls short of repaying a £30m shareholder loan. The potential terms came as political pressure mounted on the owner to accept an offer that would keep the company trading.

Suppliers’ decision to hold back deliveries has reduced Poundland’s ability to operate while the administration process proceeds. The chance of the chain avoiding mass store closures and job losses was described as shrinking by the day.

The prime minister’s spokesperson said: “We continue to stay close to what’s an extremely worrying situation for Poundland staff, their families and communities.”

The prime minister’s spokesperson said: “Gordon Brothers need to explain why they haven’t accepted any offer to keep the company going.” The spokesperson added: “It appears they’re not acting in the best interests of their loyal UK staff and stores.”

Gordon Brothers executive Mark Newton-Jones defended the company’s approach in a letter to the government reported by Sky News. He said the owner had “supported Poundland with £85m of additional financing” since acquiring it for £1 last year and that the chain had returned to underlying profit. The letter added: “Like other high street retailers, the company faces multiple economic challenges, including rising inflation, increasing staffing costs and shrinkage from severe levels of shoplifting, which means it is still not cash-generative at a sustainable level despite the turnaround efforts.”

Conservative business spokesperson Bradley Thomas blamed the government for Poundland’s demise and said: “The current economic landscape is hostile to British business.” Earlier on Tuesday, Poundland founder Steve Smith told the Guardian that staff could be out of work for years if the chain collapsed.

Poundland’s future remained unresolved as the government prepared for Wednesday’s meeting with management and Usdaw and Reynolds’s later meeting with Gordon Brothers. Gordon Brothers was approached for comment.