Second buyer makes rescue bid for Poundland as retailer faces collapse

A second buyer has made a rescue bid for Poundland as the discount retailer teeters on the brink of collapse, with thousands of jobs at risk.

London-based Xyra Group has offered to pay off half of Poundland's outstanding debts - a key sticking point in takeover talks so far - immediately. The rest would be deferred.

With Poundland close to collapse, US-based owners Gordon Brothers have already rejected a rival bid from an Irish property group which would have saved its 12,000 staff.

Gordon Brothers said the business has faced years of instability and "remains challenged and vulnerable".

Sources familiar with the offer said Xyra is offering to immediately pay off £12.5m of an outstanding £30m loan on Poundland's books.