Reynolds to hold further talks with Poundland owners amid rescue talks

Jonathan Reynolds, the business secretary, is to hold further talks with Poundland's owner and its management team amid a race to save the discount retailer from collapse.

Sky News has learnt that Whitehall officials are trying to schedule a meeting with Gordon Brothers and Poundland bosses before the expiry of a second notice of intention to appoint administrators, which was filed on Thursday.

The notice expires on 26 November, and a government source said this weekend that Mr Reynolds wanted to meet both parties in the days leading up to that.

Both Mr Reynolds and Andy Burnham, the prime minister, have made strident public comments about Gordon Brothers' conduct during the Poundland crisis, with the US investor facing accusations that it has been orchestrating the retailer's demise in order to cash in on a lucrative shareholder loan arrangement.

Other than those remarks, however, there has been little evidence of any concerted government pressure on Gordon Brothers.

The business and trade select committee, chaired by Labour MP Liam Byrne, intends to call the investor back for a public hearing after declaring itself dissatisfied with what it heard this week from Mark Newton-Jones, Gordon Brothers' European chief.

Alvarez & Marsal, the advisory firm leading Poundland's auction, is said to still be in talks with at least three bidders keen to acquire the chain solvently, although there remain serious doubts about whether Xyra Group Holdings and Innovest have lodged bids which are either satisfactorily financed or high enough to secure Gordon Brothers' approval.

Martin Property Group, a Northern Irish company, is seen as credible and has the backing of Poundland's management team, but has seen its offers fail to progress because they have failed to repay enough of a £22.5m loan owed to Gordon Brothers.

This week, however, there have been signs that Gordon Brothers' stance is softening amid intense heat from Westminster.

It agreed to unlock roughly £20m held in Poundland's own bank facilities in order to place new orders with suppliers, a move which gave Poundland's bosses enough confidence to delay the appointment of administrators.

The release of the funding came despite Mr Newton-Jones denying to MPs that any restrictions on access to that funding had ever been imposed.

With no guarantee of a solvent sale, a threat continues to hang over roughly 10,500 Poundland jobs just weeks before Christmas, with many of its 600 stores in the UK and Ireland then open to being cherry-picked by high street rivals.

In recent weeks, a trio of Poundland directors resigned just two weeks after their appointment, in protest at Gordon Brothers' apparent moves to push the retailer towards insolvency proceedings.

Its tactics have sparked particular fury because the chain's performance under managing director Barry Williams has seen a sharp turnaround, putting it on a path back towards sustainable profitability.

In a statement on Thursday, Gordon Brothers said: "We support the board's decision to extend the legal moratorium over the company by a further ten working days.

"This brings additional stability amid an ongoing sale process in the backdrop of increasing cost pressures and a difficult inflationary economic environment."

It added: "We are in discussions with three parties for a sale of the whole business, and we have also received several offers from established high street retailers for significant parts of the business.

"Over the past 12 months, Gordon Brothers has provided £85 million in new financing - stepping in when no one else was willing to finance the company - and has contributed substantial efforts to support a turnaround.

"Had we not, the company would have collapsed into insolvency in August 2025. Our efforts have continuously focused on the company's value and its people, not prioritising one over the other.

"While our preference remains a sale of the whole company, we are taking due care to ensure that any successful offer can provide the funds required to acquire the business and see it through to sustainable cash generation.

"We, the board, and all involved are working to secure a credible plan that delivers certainty, preserves value and protects as many jobs as possible."

Gordon Brothers declined to comment on a prospective further meeting with Mr Reynolds, while the Department for Business, Innovation, Science and Trade and Poundland have been contacted for comment.

(c) Sky News 2026: Reynolds to hold further talks with Poundland owners amid rescue talks