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A second potential buyer has emerged with a rescue proposal for Poundland, the discount retailer facing the threat of collapse and putting thousands of jobs at risk. The London-based Xyra Group has put forward an offer to immediately settle half of Poundland’s outstanding debts, a key issue that has delayed takeover progress. The remainder of the debt would be paid at a later stage under this proposal.
Poundland is currently under the ownership of Gordon Brothers, a US investment firm that bought the company for just £1 last June. Gordon Brothers previously dismissed a competing bid from an Irish property group, which would have saved all 12,000 employees. The firm described Poundland’s situation as one marked by prolonged instability, emphasizing the business remains “challenged and vulnerable.” Insiders revealed that Xyra’s bid includes an upfront payment of £12.5 million towards the company’s £30 million loan.
In parallel with the new offer, UK Business Secretary Jonathan Reynolds has held critical discussions with Gordon Brothers regarding the retailer’s future, stressing the need to safeguard the workforce. At these talks, Gordon Brothers pledged to prioritize offers that preserve both Poundland’s stores and jobs. The investment firm stated it is “pursuing all avenues through the sale process” to secure the best solution that protects as many roles as possible and maintains the company’s value.
Despite the encouraging nature of Xyra’s proposal—offering a larger portion of the debt than the rejected bid from Martin Property Group—there remain doubts over the seriousness and capabilities of Xyra as a buyer. Questions linger regarding whether Xyra has the necessary financial resources and the suitability to manage Poundland long-term. Supporters point to the addition of Andrew Brode, a respected figure from AI solutions provider RWS, as a credibility signal. However, Judith MacKenzie of Downing Fund Managers highlighted a lack of publicly available information on Xyra, noting that “although some of the people look good, I can’t find any evidence to say that they’ve got the money to back it up yet.”
Gordon Brothers reiterated their commitment to securing the best possible outcome for everyone connected to Poundland, including creditors, employees, and local communities. Both Reynolds and Prime Minister Andy Burnham have voiced frustration over the prolonged delay in finalizing a deal. While Xyra has expressed interest in purchasing the entire business, it is not yet clear whether it plans to maintain Poundland as a single entity or break it up. The potential collapse could have wider repercussions, as confirmed by founder Steve Smith, who warned that the failure of Poundland might also sink two to three thousand suppliers who depend exclusively on the retailer, potentially putting up to 30,000 jobs at risk in total
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