Betson

🚨Poundland is a scandal. Here’s why: People have attacked me for taking up this fight, saying ‘businesses go under all the time, that’s just the free market’. Sure, but this is *crony capitalism* and the 12,000 workers deserve better. This is what’s really happening: Poundland’s owners, an American outfit called Gordon Brothers are trying to put the business into administration. They bought it for £1 and have a £30m loan out to it, which they want back. It’s a tough sector, suffering from fierce competition, battered by Labour’s tax increases and customers feeling the pinch. However, the business is solvent, sales grew 6.7% in the last year and 8.4% in the first three weeks of October. It’s about to see the best trading weeks of the year approaching Christmas. This is not a business that has to shut its doors. What’s more, if Gordon Brothers want to walk away, there are others keen to take it on, as a going concern. I’ve spoken to two, highly credible parties today, who have attempted to buy the business. Both tell me they have the money. One, a hugely successful British retail entrepreneur, didn’t even get a response from Gordon Brothers. They would keep the stores intact and keep the positive momentum going. I’ve been inundated with messages from staff and suppliers, all saying how hard they’ve worked in the past year to turn the business around. Instead, Gordon Brothers are risking 12,000 jobs just before Christmas (and retail isn’t an easy industry to get another job in right now) and potentially another 10,000 amongst the suppliers. Poundland has a number of suppliers that only or largely supply them, and who will face an uncertain future without them. Then there’s the loss to the landlords, the rates owed to local councils, tax due to HMRC and the lost footfall on our high streets if 600 stores shut. The wage bill of Poundland is close to £500m, so you can imagine the cost to the taxpayer in benefits if 12,000 people lose their jobs. Could it be that Gordon Brothers, far from being a real ‘turnaround specialist’ is just trying to look after themselves and make a profit at the expense of literally everyone else? Might they be using the administration process to protect their loan? And the advisors who handle administration will also pockets millions in fees. Naturally. Could we see a decent business run down, shelves slowly emptied and then folded, with everyone losing out bar them? Thats what happened with another, similar business, Poundworld. It’s not for nothing that loyal staff emailing me are calling them ‘Greedy Brothers’. Should politicians be interested in this scandal? Too right they should. Frankly I’m shocked more aren’t. It shows how little Westminster cares about working people. You can be pro business, but anti crony capitalism. Reform UK is. The Business Secretary needs to ask searching questions of Gordon Brothers and this administration process, before a 35 year old mainstay of our high streets and 12,000 jobs are destroyed by them.