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

Poundland is on the brink of collapse and unable to buy new stock after its American owner Gordon Brothers froze about £50m in its bank accounts, leaving its 600 shops running out of supplies. The chain has until Thursday to secure a rescue deal. The discount retailer has filed a notice of intention to appoint administrators, protecting it from creditors. Gordon Brothers, which bought Poundland 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 like-for-like sales up 11.4% last week and a profit of £18.1m in the year to September, though Gordon Brothers says the chain remains "challenged and vulnerable". MPs will question the owner's executives on Wednesday over its rescue efforts.