Up to 12,000 high street jobs are at risk after Poundland filed for administration, prompting Prime Minister Andy Burnham to demand urgent answers.
Andy Burnham has broken his silence (Image: Getty)
Andy Burnham has broken his silence on the collapse of beloved British high street chain Poundland, hinting his Government may come to the rescue. Fears are mounting that thousands of Britons could lose their jobs after directors filed a notice of intention to appoint administrators.
The discount chain has its largest distribution hub in Mr Burnham’s Makerfield constituency. Now the Prime Minister has joined Business Secretary Jonathan Reynolds in demanding answers. They are seeking to know why bids to buy the firm from its current owners, Gordon Brothers, have been turned down. Earlier this week, the Irish firm Martin Property Group reportedly offered to buy the whole chain.
Speaking as Poundland filed its notice on Thursday, Mr Burnham said: “This is a deeply worrying time for Poundland staff and their families. We want to see jobs protected. If there was a potential owner to avoid this that hasn’t been accepted, then the Business Secretary and I want to know why that is the case. We stand ready to support the workforce however we can.”
Mr Reynolds said: “If it is true that it was not necessary to put the business into administration then the present owners will have to account for that. Poundland has 600 stores across the country and employs 12,000 people. Many fear they could lose their jobs if the firm collapses.”
Company bosses issued a statement saying: “Over the past two months, initially prompted by interest from several parties, we have been working on a formal sale process for Poundland.
“Despite enormous efforts it has not been possible to identify an acceptable offer for the business as a whole.
“The process has however attracted several established retail operators who have made formal offers, collectively these cover a significant part of the business, and we believe offer the best available prospects for shareholders, creditors and to preserve jobs.
“We recognise any sale process creates uncertainty and particularly when set against a challenging UK economic environment. We thank all stakeholders, and in particular our people for their support during this period.”