Poundland has dismissed what it calls "speculation" surrounding the company's sale, after the retail workers' union Usdaw criticised its US owner, Gordon Brothers.
Usdaw, which represents shop workers, stated earlier this week that it holds "deep concerns" about Gordon Brothers' sale of the business. Bally Auluk, Usdaw's national officer, claimed the owner had declined to meet with the union and suggested the company was close to administration, potentially jeopardising 12,000 jobs.
However, sources close to Poundland indicate that the company's management repeatedly offered to meet with Usdaw without receiving a response. Poundland's managing director, Barry Williams, also wrote to staff last week to clarify that reports of a management buyout option (MBO) were incorrect.
It is understood that Poundland's management has instead expressed a preference for one of the bidders and is collaborating with them on their proposal. This bidder is reportedly Martin Property Group, an Irish firm that recently purchased National Car Parks (NCP) out of administration.
A spokesperson for Poundland told City AM: "We understand these kinds of sale processes often lead to significant concern and speculation – much of it wide of the mark. We have always had an open door to Usdaw and they know we’re focused on the recovery that’s now firmly embedded in the business."
Gordon Brothers initiated the sale of Poundland last month, just over a year after acquiring the company for a nominal £1 fee from PepCo. Advisors Alvarez & Marsal are currently evaluating bids, which include proposals to divide the business and offers for the entire company. Other interested parties include Poundstretcher owner Fortress Investment Group and TG Jones owner Modella Capital.