Poundland’s owners must explain why they have rejected offers to save the troubled discount chain, Downing Street has said, as the Business Secretary prepares to meet them amid fears for thousands of jobs.
US-based Gordon Brothers was also accused by No 10 of not “not acting in the best interests” of Poundland’s UK staff and stores.
Poundland filed a notice to appoint administrators last week, putting the future of its roughly 11,000 workers at risk.
Gordon Brothers, which only bought Poundland last year for £1 and launched a sale process for the retailer at the start of September, is under pressure to accept a bid to save the retailer, which is on the brink of collapse despite interest from several major supermarket chains.
The Prime Minister’s official spokesman told reporters on Tuesday: “We continue to stay close to what’s an extremely worrying situation for Poundland staff, their families and communities.
“The Business Secretary will meet the Gordon Brothers later this week in order to continue establishing the facts and seek an outcome that protects jobs and keeps Poundland trading.
“BIST (Business, Innovation, Science and Trade) minister Kate Dearden will also meet Poundland’s chief executive and chief finance officer this week.
“And, more broadly, both the PM and the Business Secretary have been clear they want to know what’s happening.
“Gordon Brothers need to explain why they haven’t accepted any offer to keep the company going. That’s the case.
“It appears they’re not acting in the best interests of their loyal UK staff and stores.”
The notice of intention to appoint administrators filed on Thursday gave the business 10 working days of breathing space from creditors to secure a potential rescue deal.
Advisers are still in talks with parties interested in buying the brand and swathes of stores, around two months after a sale process was launched.
Tesco has held talks over proposals to buy up to 150 Poundland stores, sources with knowledge of the process have told the Press Association.
Poundstretcher owner Fortress also showed its interest in purchasing a significant number of stores, understood to be as many as 250 shops.
It is understood that other grocery chains, such as Iceland and Lidl, are also in the frame to acquire some stores.
Wilko and The Range owner CDS Superstores and B&M have also expressed their interest in sites.
It comes after owner Gordon Brothers rejected a takeover offer from Irish real estate firm Martin Property Group, which management named as their preferred bidder last month.
In the Commons, Labour MP for Hartlepool Jonathan Brash said Poundland’s owners had behaved like “predatory capitalist vultures”.
Clive Efford, Labour MP for Eltham and Chislehurst, told MPs that Gordon Brothers had the ability to “make a mockery, to be quite frank, of the Government’s plans” for the high street.
Responding to questions, Ms Dearden said Government officials had met company leaders on Monday night before the meeting with ministers.
“We’ve been demanding to know what is happening, particularly, for Golden Brothers, to explain why they haven’t accepted any offer to keep the company going,” she said.
The minister said that while “it would not be appropriate for the Government to seek to influence” commercial negotiations, “it is legitimate for the Government to ask a business that they are doing everything they can to protect employees and suppliers, to get clarity of their plans and a clear understanding of the situation”.
Shadow business minister Bradley Thomas warned that “the current economic landscape is hostile to British business”, with what he described as “stifling red tape, skyrocketing energy bills and surging employment costs”.
The Conservative MP added: “Increased political interference is a failed strategy that offers nothing but false promises to workers and consumers alike.”
Ms Dearden denied the Government was interfering and added: “We’re clear as a Government of what our expectations are and why we are taking a responsible approach, not sit by and do nothing.
“What’s the point of politicians in Government if we took that approach?”
Poundland currently runs about 600 stores across the UK and Ireland, including around 70 under the Irish Dealz brand.
Gordon Brothers had overseen a major turnaround programme at Poundland which had already resulted in the firm shutting more than 100 shops over the past year in an effort to shore up its finances.
However, the impending insolvency comes amid reports of increasing friction between Gordon Brothers and Poundland management.
The owners rejected the solvent takeover bid from Martin partly due to expectations that bidders stump up £30 million to cover a loan Gordon Brothers took on from its takeover last year.
The head of Gordon Brothers’ European operations reportedly told the Business Department the firm stood by its stewardship record.
Mark Newton-Jones said in a letter, seen by Sky News, that Gordon Brothers had “supported Poundland with £85 million of additional financing” since acquiring the business in the summer of 2025.
He said the firm had committed significant working capital to reducing Poundland’s £70 million losses, but warned that inflation, rising staffing costs and high levels of shoplifting meant the retailer was still not generating enough cash to operate sustainably.
Mr Newton-Jones argued that breaking up the chain, with retailers including Tesco, Lidl and B&M interested, offered the best prospect of protecting jobs at Poundland, according to Sky.
He said Gordon Brothers was “thoroughly (evaluating) all options” after “approaches from some of Britain’s most well-regarded employers”.
“Additional offers continue to be received and active discussions continue on proposals,” he wrote.