Andy Burnham said the government is "ready to support" Poundland staff as the discount retailer faces collapse after its US owner Gordon Brothers cut funding and rejected a takeover bid from Irish firm Martin Property Group.
Poundland's managing director Barry Williams filed a notice of intention to appoint administrators, giving the business 10 days to find a rescue deal. Gordon Brothers bought Poundland for £1 last year and has now restricted access to funds needed for day-to-day operations, Williams told staff. He said the MPG offer was "fully funded" and would have kept the business intact.
Burnham said the government wants to know why the takeover offer was rejected. Business Secretary Jonathan Reynolds said he was "very much concerned" by the uncertainty. Gordon Brothers indicated it wants to break up Poundland, with Poundstretcher owner Fortress, B&M, Lidl and Iceland expressing interest in buying individual stores.
Three independent directors resigned in disagreement with Gordon Brothers' decision to reject MPG's bid. Poundland employs 12,000 staff across roughly 600 stores in the UK and Ireland. Union representative Bally Auluk said staff watched "a multi-billion pound company jeopardises their livelihoods as it tries to extract £30m from a business it bought for £1". Staff at Poundland's Walsall support centre protested Thursday chanting "Save our Jobs".