Poundland faces collapse as owner freezes £50m, halting stock purchases

Poundland is on the brink of collapse, with its American owner Gordon Brothers freezing about £50m in funds, leaving the discount chain unable to buy new stock for its 600 shops. The company has until Thursday to secure a rescue deal. Poundland has filed a notice of intention to appoint administrators, protecting it from creditors until Thursday. Gordon Brothers, which bought the chain for £1 last June, rejected a takeover bid that could have saved thousands of jobs, and has been approached for comment. Poundland boss Barry Williams reported an £18.1m profit in the year to September, a recovery from £68m losses, but Gordon Brothers says the business remains challenged. A last-minute bid from London-based Xyra Group is reportedly making progress, with an extension of Thursday's deadline increasingly likely.