Poundland CEO Seeks Legal Advice After Owner Gordon Brothers Restricts Funding Access

Poundland's chief executive is seeking urgent legal advice after accusing owner Gordon Brothers of restricting access to a key lending facility, escalating a dispute that threatens to push the discount retailer into administration. CEO Barry Williams told the company's 12,000 employees in a letter Tuesday night that Gordon Brothers had curtailed management's access to funds normally available under an existing loan agreement, calling the move "unexpected, unwanted and wholly avoidable." The letter followed the resignation of three independent directors—Andrew Kirkpatrick, Stephen Welch and Dominic Young—who stepped down Tuesday in protest over efforts to force the retailer into insolvency. The standoff stems from Gordon Brothers' rejection of a bid from Ireland's Martin Property Group, which management backed as a "fully-funded, ready-to-go" offer that would keep the business intact. Gordon Brothers is seeking full repayment of a £30 million loan facility it acquired for £1 from former owner Pepco, while Martin Property Group has offered to pay half upfront with the remainder deferred two years. Poundland operates roughly 600 stores, and a break-up would likely mean piecemeal sales to rival retailers.