Poundland owner Gordon Brothers has released £10m of the retailer’s cash to pay suppliers, in a last-minute move that could buy more time to secure a rescue deal.

The firm agreed to unlock the funds on Tuesday, just hours before its senior UK executive was due to face questioning from MPs over its handling of the retailer’s financial crisis.

The decision to release funds follows mounting pressure on Gordon Brothers after it restricted Poundland’s access to cash and credit facilities, leaving the company unable to order new stock ahead of the crucial Christmas trading period.

The BBC reported that around £50m had been frozen by the investment firm, with the restrictions preventing Poundland from replenishing shelves across its roughly 600 stores.

The release of £10m is understood to have been a significant breakthrough in rescue negotiations, although sources cautioned that it does not guarantee the retailer will avoid administration.

Poundland’s notice of intention to appoint administrators is due to expire on Thursday (12 November), with more than 10,000 jobs hanging in the balance.

However, sources told the BBC that the latest funding release could allow the business additional time to pursue a solvent sale.

Retail Gazette recently reported that Poundland had been blocked from buying new stock despite an £86m improvement in its financial performance.

Managing director Barry Williams recently told staff that the retailer had swung from an EBITDA loss of £68.1m in the year to September 2025 to a profit of £18.1m in the following financial year.

Like-for-like sales also jumped 11.4 per cent during Halloween week, although the figures have yet to be audited.

Gordon Brothers has maintained that Poundland remains financially vulnerable despite the improving trading performance.

Meanwhile, Irish property investor Martin Property Group is understood to remain interested in acquiring the business as a going concern, while rival bidder Xyra Group Holdings has reportedly emerged as a frontrunner due to its offer to repay a larger portion of a £30m shareholder loan upfront.

This follows intervention from Prime Minister Andy Burnham, who urged Gordon Brothers to work with the government to protect Poundland’s stores and jobs.

Gordon Brothers’ UK operations boss Mark Newton-Jones is expected to face MPs on the Business and Trade Committee today, where he will be questioned over the investment firm’s stewardship of the business and its approach to potential rescue bids.

The firm has faced accusations that it could benefit from breaking up Poundland and selling its stores and stock separately, claims it has denied.

As Retail Gazette previously reported, Gordon Brothers filed a notice of intention to appoint administrators in October, after a management-backed rescue proposal failed to secure agreement.

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