Business ·
Poundland owner accused of taking millions as chain teetered
MPs allege that Poundland's owner withdrew millions while the budget retailer was in peril, as management prepares to ask a court for more time to reach a rescue deal.
MPs allege that Poundland's owner took millions of pounds out of the discount chain at a point when the business was dangerously close to collapse. The claim adds pressure on the retailer while its leadership tries to keep the company afloat.
Poundland's management is due at a high court hearing on Thursday morning. It will ask judges to grant an additional fortnight of protection from creditors, giving the company more room to complete a rescue agreement.
The chain runs 600 shops in the UK and Ireland and has 12,000 staff. The court request shows the retailer remains in a fragile position as it seeks to secure its future.
The accusation concerns the owner's financial conduct before the current rescue effort. With a large workforce and hundreds of outlets at stake, the case is being watched closely.
Source: The Guardian
Written with AI from the linked source