Poundland could fall into administration within days putting 12,000 jobs at risk

According to trade union Usdaw, Gordon Brothers wants any buyer to repay a £30million loan it made to the business.

The investment firm has already closed approximately 150 stores since taking over from Pepco, under which Poundland had experienced years of financial decline.

Several parties have submitted competing bids, but Usdaw warned that the chain could still enter administration.

Bally Auluk, a national officer at Usdaw, said: “Sources within the company are telling me that a decision about the future of Poundland could be made as early as [Tuesday], and there are deep concerns that the business could go into administration, which would be a disaster for our members.”

Mr Auluk added that the union was aware of a management buyout attempt but had been told offers were being rejected.

He also expressed confusion at the characterisation of Poundland as a struggling business, noting that the company had recently announced a return to like-for-like sales growth and had publicly thanked staff for their “amazing efforts.”

“We found it difficult to understand why Poundland was being described as struggling,” Mr Auluk said.

Poundland managing director Barry Williams and former Pepco chairman Andy Bond are leading a bid to buy the business with Irish property company Martin Property Group.

A Poundland spokesman said Martin Property Group was the leadership team’s “preferred partner” for the takeover.

Investment firm Modella Capital has also expressed interest in buying the chain.

Its bid is understood to have support from both Mr Williams and Mr Bond.

Meanwhile, Aldi and Lidl are reportedly interested in buying some individual store sites rather than taking over the entire business.

Irish family business Henderson Property Group has additionally expressed interest, joining what has become a crowded field of potential suitors for the embattled retailer.

Poundland reported like-for-like sales growth of 6.4 per cent during the final quarter of its 2026 financial year, with trading gathering pace through September and October.

The company is also testing a revamped store format across 15 pilot locations, with a stronger emphasis on general merchandise and its PEP&CO clothing range.

The clothing line has reportedly delivered better profitability than the wider business.

A Poundland spokesman said: “While the Martin Property Group is their preferred partner, the leadership team’s sole intention is to work with whoever can deliver the best result for the business, colleagues and suppliers and build on the successful recovery that’s already taking shape.”

The coming hours are expected to prove decisive for the future of one of Britain’s best-known high street discount chains.