Government to probe Poundland crisis as unions warn of job losses 'before Christmas'

Updated: 04:57 EDT, 28 October 2026 The Government is now asking questions about the deepening crisis at Poundland - as up to 12,000 jobs are on the line, including in the Prime Minister's constituency. Ministers are questioning the retailer’s private equity owners, Gordon Brothers, which have been the source of outrage as it looks increasingly likely that the business will be split up and sold. Business secretary Jonathan Reynolds has instructed his chief strategic business adviser David Bickerton to ‘establish the facts’ over a potential collapse, the Financial Times reported.And shop workers’ union Usdaw are set to meet with the minister for the future of work, Kate Dearden, today amid warnings of what would be the biggest High Street collapse in years.Three directors, appointed less than a fortnight ago, last night walked out following a dramatic dispute with owners Gordon Brothers. Government ministers are growing concerned as fears over a collapse of Poundland deepenAnd the retailer’s own management last night hit out at the owners, calling the process ‘unexpected, unwanted and avoidable’.The shake-up came after the owners, who bought Poundland for just €1 last year, turned down a rescue offer from would-be buyer Martin Property Group.It is feared they will instead break the company up and sell off the shops piecemeal – or even let it fall into insolvency.Speaking on Radio 4’s Today programme, Usdaw national officer Bally Auluk warned that thousands of employees ‘are potentially going to be put out of a job before Christmas in the coming days.’The union, alongside the retailer’s management, wants to see the company stick with a bid from Irish company Martin Property Group, rather than selling off shops as piecemeal.When asked if selling off shops in parts to multiplier bidders could actually be the best deal on the table, Auluk said: ‘You’re talking a minimal number of units that they're looking to sell.’He added: ‘There’s no reason why they can't accept this fully funded bid from the Martin Property Group, which would have ensured the viability of the company going forward.’But Gordon Brothers have said they are considering other bidders, after their talks with the Irish group broke down as they did not want to commit to a £30 million upfront payment.Job losses could hit 600 shops and a distribution centre in Makerfield, Prime Minister Andy Burnham’s constituency.Government adviser Bickerton is set to ask ‘fairly basic questions of senior people around Poundland’ in order to ‘establish what the situation is,’ the Financial Times reported.A business department spokesman said: ‘We know this will be a concerning time for Poundland employees, their families and communities across the UK.‘This is a commercial process and ultimately a decision for Poundland’s owners, so it would not be appropriate for the government to comment further.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you