Poundland Directors Resign as Owner Gordon Brothers Pushes Retailer Toward Insolvency

Three Poundland directors resigned Tuesday after owner Gordon Brothers moved to force the discount retailer into administration, escalating a stand-off that puts thousands of jobs and hundreds of stores at risk. Andrew Kirkpatrick, Stephen Welch and Dominic Young — appointed just 12 days ago and serving unpaid — also objected to Gordon Brothers' rejection of a solvent bid from Ireland's Martin Property Group. The refusal stemmed from a dispute over upfront payment; Gordon Brothers seeks £30m for a business it bought for £1 last year, while Martin Property Group offered roughly half upfront with the remainder deferred two years. Gordon Brothers agreed Tuesday to release funds so Poundland can meet payroll for its 12,000 workers on Thursday. It is reportedly in talks with Fortress, owner of Poundstretcher, over hundreds of UK stores, while Henderson Property Group pursues the 70-store Dealz Irish arm. Management told suppliers last week that sales grew 6.7pc in September and 8.4pc in the first three weeks of October, though Gordon Brothers recently rejected CEO Barry Williams' 2027 business plan.