Future of Devon’s Poundland stores uncertain as discount chain moves to appoint administrators
Poundland has 10 stores in Devon, but the business looks likely to be sold off in parts after no buyer was found for the whole chain
The future of Devon’s 10 Poundland stores is unknown after the discount chain filed to appoint administrators following weeks of uncertainty.
Today (Thursday, October 29) the Poundland board announced it had filed a notice of intention to appoint AlixPartners as administrators.
The filing gives the business a 10-working-day legal moratorium, protecting it from creditors while it works out what happens next.
Poundland says its stores will remain open as normal during the process.
According to the company’s own store finder, there are two Poundland stores in Exeter, three in Plymouth, two in Torbay and one each in Teignmouth, Ivybridge and Barnstaple.
In a statement, the Poundland board said: “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.”
It added: “In order to bring stability, we have today filed a Notice Of Intention (NOI) to appoint representatives of AlixPartners as Administrators to the business.”
According to national news reports, owner Gordon Brothers rejected an offer for the whole business that Poundland’s management had backed, and the Telegraph has reported a dispute between the owner and the chain’s directors over its funding.
The business secretary is reported to be looking into whether the chain is being pushed into an unnecessary administration.
The shopworkers’ union Usdaw has urged the government to act, saying 11,000 jobs are at risk in the run-up to Christmas.
The board’s statement added: “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.”