Poundland owner Gordon Brothers 'made more than £18m' as chain fights for survival

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Gordon Brothers, the majority owner of Poundland, has made more than £18 million from its short ownership of the discount chain and could make millions more if the business collapses, according to a presentation to the government reported by Sky News. The exclusive, by Sky's Mark Kleinman, was seized on by Conservative MP Robert Jenrick on Saturday, who called the firm 'Greedy Brothers' and said workers, suppliers and taxpayers would be the ones to lose out.

Gordon Brothers bought Poundland for £1 last year and filed a notice of intention to appoint administrators last week, putting about 12,000 jobs at stake across 600 stores. The filing gave the chain a moratorium from creditors while a rescue deal is sought, and the committee's account puts the workforce at roughly 11,000.

The Commons Business, Innovation, Science and Trade Committee has agreed to hear Gordon Brothers' evidence in private in the first instance, after the firm asked for a closed session to avoid what it called a 'show trial'. Committee chair Liam Byrne said the firm is in active talks with several credible buyers about selling Poundland as a going concern. Takeover offers have come from Martin Property Group, the preferred bidder of Poundland's management, and from Xyra Holdings, which has offered £12.5 million upfront towards repayment of a £30 million shareholder loan, against £5 million offered by Martin Property Group.

The £18 million figure comes from Sky News, citing a presentation to the government, and has not been independently confirmed in the sources read. The figures for jobs at stake differ slightly between outlets: Sky and The Guardian put the number at about 12,000, while the committee's account speaks of roughly 11,000 workers. The Grocer reports that Gordon Brothers rejected Martin Property Group's bid because it did not repay the £30 million shareholder loan in full on completion, and that advisory firm AlixPartners is lined up to oversee a potential insolvency if no takeover is agreed. The firm itself says it is pursuing all avenues to protect as many jobs as possible and preserve value.

Poundland's managing director Barry Williams and finance chief Shaun Wills met Kate Dearden, the minister of state for the future of work, on Wednesday in the hope that ministerial pressure would persuade Gordon Brothers to unlock access to operational funding. Byrne told MPs that Parliament must know every step possible is being taken to save the business, adding that decisions taken in the boardroom of a retailer this size are felt in homes and on high streets across the country.

The creditor moratorium runs until next Thursday, leaving days to strike a deal before administrators can be appointed. Other offers are on the table for parts of the business, with Tesco reported to be in discussions over 150 of the chain's 600 stores and B&M and Poundstretcher also interested in locations, though it is not clear how many jobs a break-up would save.