Poundland owner extracted millions when chain was on ‘knife-edge’, MPs say

Retailer’s management to seek two-week extension of legal protection from creditors in high court

MPs have accused the owner of Poundland of extracting millions of pounds from the retailer when it was on a “knife-edge” as the budget retailer seeks extra time to secure a rescue deal.

The management of Poundland, which employs 12,000 people and operates 600 stores in the UK and Ireland, will seek a two-week extension of legal protection from creditors from the high court on Thursday morning.

The budget chain’s owner, Gordon Brothers, is under pressure to accept a bid for the company that would save retail jobs and protect thousands of suppliers since Poundland filed a notice of intention to appoint administrators two weeks ago.