The director of an enterprise AI firm could be key to a rescue deal for Poundland.
The stricken discount retailer could enter administration within days after owner Gordon Brothers rejected a rescue bid from its management team, backed by Ireland-based Martin Property Group, which would have saved its nearly 12,000 staff and potentially also a wider supplier base of 18,000 people.
The sticking point was demand for full repayment of a £30 million shareholder loan with any buyer of the business.
Now a new bidder, London-based Xyra Group, has reportedly offered to pay off £12.5m of this debt, with the rest deferred.
While the validity of the buyer is yet to be established – such as whether it has the funds – it has appointed a credible figure to its board.
Andrew Brode (pictured) is a non-executive director at RWS, an enterprise software company founded in 1958 which has repositioned itself recently as a provider of AI solutions.
A major shareholder in RWS, he served as the Maidenhead-headquartered group’s executive chairman between 2003 – when he floated the business on London’s junior AIM market – and 2023, having led a buy-in of RWS in 1995.
Brode is also chairman of Learning Technologies Group Limited.
US-based investment group Gordon Brothers said Poundland, which it bought for just £1 last summer from Pepco Group, has faced years of instability and “remains challenged and vulnerable”.
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Poundland filed a notice to appoint administrators last Thursday, which gave it 10 days of breathing space with creditors to explore a rescue deal.
This week Business Secretary Jonathan Reynolds held talks with Gordon Brothers and urged it to protect the livelihoods of Poundland’s workforce.
That came after it was revealed that Tesco is considering a bid to buy up to 150 of its 600 UK and Ireland stores.
Poundstretcher owner Fortress is also said to be interested in acquiring 250 shops, while other interested parties include Iceland, Lidl, CDS Superstores – owner of Wilko and The Range – and B&M.
Gordon Brothers said: “Our intent throughout the comprehensive sale process has been to protect as many jobs as possible and preserve value in order to deliver the best available outcome for all the people, creditors and local communities who care about this business as much as we do.”
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