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Poundland close to collapse as new directors head for exit

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News

Poundland close to collapse as new directors head for exit
British retail chain Poundland faces the prospect of insolvency as three recently appointed directors prepare to resign following a dispute with majority owner Gordon Brothers, Sky News reports.

The disagreement centres on US investment firm Gordon Brothers’ decision not to accept a solvent offer from Martin Property Group. Sources suggested a break-up was becoming increasingly likely, although a revised offer could still revive rescue hopes.

The retailer employs more than 10,000 people and operates approximately 600 stores. Several competitors have expressed interest in acquiring parts of its estate. According to Sky News, Gordon Brothers believes a break-up could improve its chances of recovering a £30 million shareholder loan. However, recent improvements in sales figures and a new store format have shown performance improvements, prompting questions about whether insolvency is necessary.

Read the latest at Sky News
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