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Mon, 09 Nov 2026

Mon, 09 Nov 2026 Poundland unable to buy new stock as fears over collapse grow

The discount chain is continuing to edge towards collapse and is said to be "running on fumes", according to one insider.
Poundland, a UK discount chain with 600 stores, is on the brink of collapse due to its American owner Gordon Brothers blocking access to cash in its bank accounts. The company has until Thursday to secure a rescue deal and avoid administration. About £50m of Poundland's funds have been frozen by Gordon Brothers, making it difficult for the retailer to buy new stock to fill its shelves. This has put pressure on suppliers and employees who are at risk of losing their jobs if the business collapses. Poundland has filed a notice of intention to appoint administrators, which protects it from creditors until Thursday. The company's boss Barry Williams said like-for-like sales were up 11.4% last week, but this was £1.5m ahead of budget and may not be enough to save the business. Gordon Brothers has been approached for comment, but a source close to the situation said that access to funds had been limited due to a conflict between Gordon Brothers' roles as creditor and shareholder. However, it is expected that a relaxation of funds will occur in the next two days. The Business Select Committee will question executives from Gordon Brothers on Wednesday about their intentions for Poundland and whether they are taking every realistic step to protect jobs and stores. The committee will also investigate whether Gordon Brothers' actions are genuine or driven by self-interest. If a solvent deal is agreed, Thursday's deadline may be extended, but if not, Poundland could collapse into administration and be broken up. London-based Xyra Group has been making "significant progress" in its bid to buy Poundland, which could now be the front-runner. Suppliers to Poundland would prefer that the business is sold as a whole rather than being broken up, but this may not guarantee job security for employees. There have been interests from other retailers such as Tesco and B&M in buying stores if Poundland collapses.