Listen again · In Conversation
Poundland’s future: jobs, suppliers and a possible rescue
· 4:25 · With Maya and Omar
The chain has about 12,000 staff and 2,000 suppliers, and its future is uncertain.
Transcript
Vocabulary in this episode
- discount shop chain
Poundland, the British discount shop chain, has filed a notice saying it plans to appoint administrators.
A group of shops that sells goods at low prices.
- appoint administrators
Poundland, the British discount shop chain, has filed a notice saying it plans to appoint administrators.
To choose professionals to manage a company that is in financial difficulty.
- creditors
The notice gives Poundland protection from its creditors until next Thursday.
People or companies that are owed money.
- in talks with
In that time, its owner, Gordon Brothers, is still in talks with possible buyers.
Having discussions to try to reach an agreement.
- in talks with
Gordon Brothers is in talks with at least two possible buyers for the whole company.
Having discussions to try to reach an agreement.
- in talks with
The Guardian reports that Gordon Brothers is in talks with possible buyers and that its executives are due to meet the business secretary.
Having discussions to try to reach an agreement.
- sell off
Another option being discussed is to sell groups of stores and sell off the stock.
To sell goods, often quickly, especially as part of closing or reducing a business.
- without new jobs
It says buyers are interested in about half the stores, which could leave roughly 6,000 employees without new jobs.
Not having another job after their current workplace changes or closes.
- be owed money
Suppliers may be owed money for goods they have already sent to Poundland.
Be waiting to receive payment that someone should pay.
- financial risk
Karan Shah, a director at supplier Universal Toiletries, told The Guardian that his company faced about £1.5 million in financial risk.
The chance that a business may lose money.
- break-up
The Guardian says the break-up option could leave suppliers with unpaid debts and stock without a retailer to sell it to.
The division of a company into smaller parts.
- supply chain
The Guardian also estimates that up to 30,000 jobs could be affected across the supply chain.
The connected businesses and steps that make and deliver products to buyers.
- trading
The main question is whether a buyer can agree a deal that keeps Poundland trading.
Continuing to operate as a business.
All In Conversation episodes
Sources
- RecherchePoundland founder Steve Smith warned the BBC that two or three thousand suppliers work only for Poundland and could be directly affected by its collapse; he said the overall impact could reach 30,000 people. Separately, the Guardian estimates that a collapse could affect up to 30,000 jobs when the supply chain is included.
- RechercheGordon Brothers has said Poundland faces rising inflation, higher staffing costs and severe shoplifting; it also says the business is not sustainably cash-generative.
- The GuardianProtect Poundland from predatory capitalism, MPs tell government | Poundland | The Guardian