Prime Minister Andy Burnham has urged Poundland owner Gordon Brothers to work with the government to secure the future of the struggling discount chain, as around 12,000 jobs hang in the balance.
Poundland filed a notice of intention to appoint administrators last week, giving the retailer a limited window to secure a rescue deal.
Burnham called on the US investment firm, which acquired Poundland for £1 last year, to find a solution that would protect workers and keep viable stores trading.
He said: “Focus on the people in your employment. Meet with the Business Secretary because we are setting up that meeting.”
The Prime Minister stressed that many of Poundland’s stores remained viable and played an important role in communities across the UK.
“They’re on high streets. They matter in our communities. There is a solution to be found here. Sit down with us and let’s find it,” he added.
His comments came as business secretary Jonathan Reynolds met Gordon Brothers on Wednesday to discuss the brand’s future.
Following the meeting, a source close to Reynolds said the investment firm had committed to doing everything possible to protect jobs, with the government continuing to monitor developments.
Pressure has been mounting on Gordon Brothers over its handling of the sale process, particularly after several interested parties emerged with proposals to rescue all or parts of the business.
Irish property firm Martin Property Group has previously submitted a bid to acquire Poundland as a going concern, while investment group Xyra Group Holdings has reportedly offered £12.5m upfront to take over the retailer.
Tesco, Lidl, Iceland, B&M and Poundstretcher are among the retailers understood to have expressed interest in acquiring parts of Poundland’s store estate.
Poundland operates more than 600 stores across the UK and Ireland, with its potential collapse threatening thousands of jobs and leaving further gaps on Britain’s high streets.
Gordon Brothers is also facing parliamentary scrutiny, with MPs on the Business, Innovation, Science and Trade Committee requesting that the firm appear before them to answer questions about its handling of the retailer’s future.
Committee chair Liam Byrne said the potential collapse was a matter of significant public interest because of the scale of possible job losses and the impact on high streets.
The government has played down the prospect of nationalising Poundland but has maintained that it wants to see a solution that protects as many jobs and stores as possible.
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