Poundland owner Gordon Brothers urged to back extension of creditor protection

Gordon Brothers Pressed to Extend Poundland’s Creditor Protection Period

Poundland’s Financial Crisis and Calls for Extended Protection

Background on Poundland’s Situation

LONDON, Nov 11 (Reuters) - Gordon Brothers, the US investment firm that owns Britain's Poundland, must allow the discount retailer to extend court protection from creditor claims to avert its collapse, a senior British lawmaker said on Wednesday.

Poundland, which trades from more than 600 stores in the UK and Ireland, employing about 12,000 people, filed a notice of intention to appoint administrators on October 29, giving the business 10 working days to find a rescue deal.

The notice expires on Thursday, but can be extended.

Parliamentary Involvement and Committee Session

Representatives of Gordon Brothers appeared before parliament's Business and Trade Committee in private session on Wednesday. The committee is chaired by Labour lawmaker Liam Byrne.

Urgency for Extension and Access to Bank Accounts

"This is a moment of urgency, we hope that Poundland will basically extend the protection period that they enjoy quickly tonight so that we maximise the chance of getting a deal done that saves the business for the future," Byrne told Sky News after the session. "But to get that deal done Gordon Brothers need to make sure that there is full and fulsome access for Poundland to its own bank accounts."

Concerns Over Job Security

Byrne said that during the session Gordon Brothers refused to say that it would prioritise saving jobs over and above maximising its own financial returns.

Gordon Brothers’ Response and Government Position

Gordon Brothers’ Statement

Gordon Brothers, which purchased Poundland last year for a nominal £1 from Warsaw-listed Pepco Group, did not respond to a Reuters request for comment. Previously a spokesperson said it is "pursuing all avenues through the sale process to find a solution which protects as many jobs as possible and preserves value".

UK Government’s Stance

The UK government has said it wants to see an outcome that protects as many jobs as possible and keeps as much of the business trading as possible.

Reporting Credits

(Reporting by James Davey; Editing by Kirsten Donovan)