Poundland workers in Port Talbot and Maesteg deserve to know why a rescue bid that could have kept the chain out of administration was turned down, their MP says.
Stephen Kinnock, the MP for Aberafan Maesteg and Secretary of State for Wales, has written to Poundland’s owner, Gordon Brothers, asking it to explain the decision. Many of his constituents work for the chain, he says.
Poundland filed notice on 29 October that it intends to appoint administrators, with up to 12,000 jobs reported to be at risk. The filing gives the company 10 working days of protection from its creditors while it looks for a way out.
Kinnock asks why Poundland’s owners rejected a solvent takeover
Mr Kinnock wrote: “I understand there was a solvent takeover proposal which may have offered a route to avoiding administration and protecting jobs, but that this proposal was rejected.”
He has asked Gordon Brothers to set out its reasons, and why it decided administration was the better course.
The rejected bid came from Martin Property Group, according to trade reports. A row over repaying a £30m shareholder loan is reported to have put other would-be buyers off.
A spokesperson for Gordon Brothers has said the firm is “pursuing all avenues through the sale process”.
Usdaw shut out of talks, says Aberafan Maesteg MP
Mr Kinnock says he is concerned by reports that the shopworkers’ union Usdaw, which represents Poundland staff, has been unable to get “meaningful engagement” with the owners despite repeated attempts.
He has urged Gordon Brothers to talk to the union urgently, so that “the voices of employees are heard”.
Port Talbot store a lifeline for families on tight budgets, MP says
The MP said Poundland’s Port Talbot store, in the Aberafan Shopping Centre, gives families cheap everyday essentials at a time when household budgets are under pressure. He wrote: “The loss of the store would have a profound impact on the community and the town centre.”
Last year Poundland had stores in Neath, Port Talbot, Maesteg, Swansea, Llanelli and Carmarthen, when Gordon Brothers bought it for £1. It went on to close its Morfa and Ammanford branches.
Prime Minister Andy Burnham tells Poundland’s owners to save stores
Prime Minister Andy Burnham has called on the owners to work with the Government to find a way through, saying many of the stores are “viable propositions”.
Mr Kinnock has asked Gordon Brothers for assurances that it will protect jobs and keep stores open where they are viable. He has also made his letter public.
He said: “I will continue pressing for the interests of workers and do everything I can to support affected workers and communities.”
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