Poundland could be handed a lifeline after a new bidder offered £12.5million to save the discount chain.
The proposal promises to protect thousands of jobs, but questions remain over the little-known firm behind it.
Xyra Group Holdings submitted its offer on Monday and has given Poundland’s owner, Gordon Brothers, until the end of today to respond.
Under the proposal, Gordon Brothers would receive £12.5million upfront towards a £30million shareholder loan.
That is more than twice the £5million upfront offered by rival bidder Martin Property Group.
A company source told ITV News that Xyra had assembled a board with the expertise to turn Poundland, which is on the brink of insolvency, around
Xyra has promised to keep Poundland’s existing management team and expand the business internationally. Around 10,400 people work for the retailer across the UK and Ireland, according to Xyra’s estimates.
The group says another 30,000 jobs depend on Poundland through its suppliers, delivery networks and presence on the high street.
However, Xyra has never bought a retail business and has yet to complete an acquisition.
The company was set up less than two years ago. Its latest Companies House filings, from August, show net liabilities of £296, meaning its liabilities exceeded its assets by that amount.
Its 23-year-old founder, Manvedeep Singh, claimed in a since-deleted YouTube video last year that the group had 50 potential acquisitions lined up. None has been completed.
Questions also remain about how the rescue would be funded. The money would come “from within our group”, a company source said, without providing further details.
Despite its limited track record, Xyra says it has brought together an experienced leadership team capable of turning Poundland around.
The company’s website names Andrew Brode, who brought RWS to the stock market, alongside Graham Martin, formerly a senior figure at restructuring firm AlixPartners, and Dave Elston, a former e-commerce executive at Clarks.
Mr Brode became a director on October 31, just two days before the Poundland offer was submitted. The board has the experience needed to rescue the retailer, a source close to Xyra told ITV News.
“They possess the experience in abundance.There are a lot of reputations here on the line. We cannot afford to say anything that isn’t factual.”
Xyra’s offer is one of two bids still being actively considered. Martin Property Group’s proposal, which was backed by Poundland’s managing director Barry Williams and chief financial officer Shaun Wills, has been turned down, though talks have not ended entirely.
A third bid from Innovest Holdings also failed to convince Gordon Brothers’ advisers that it had the financial backing to complete a purchase.
Innovest was publicly supported by Reform UK’s Robert Jenrick last weekend and is being advised by Charles Bunker, who stood as a Reform UK candidate in Hitchin at the last general election.
Several major retailers, including Tesco, Iceland, B&M, The Range and Lidl, have signalled interest in picking up parts of Poundland’s store portfolio. None is understood to want to acquire the business as a whole.
Poundland insiders have accused Gordon Brothers of deliberately steering the company towards administration. They believe the American firm stands to profit more by shutting stores and selling off stock ahead of Christmas than by agreeing a sale to a new owner.
Gordon Brothers acquired a majority stake in Poundland for just £1 in June 2025 and subsequently launched a sale process.
Last week, the retailer filed a notice of intention to appoint administrators after its board declared the two-month search for a buyer had been unsuccessful.
Mark Newton-Jones, who leads Gordon Brothers’ European operations and formerly ran Mothercare, defended the firm’s record in a letter to government business adviser David Bickerton on Monday.
Mr Newton-Jones noted that Gordon Brothers had provided £85million in additional financing since taking over.
He cited rising inflation, growing staffing costs and rampant shoplifting as reasons the business remained unable to generate cash sustainably.
MPs on the Business, Innovation, Science and Trade Committee have now called on Gordon Brothers to appear before Parliament next week to account for its role in Poundland’s looming insolvency.
Liam Byrne, the Labour MP who chairs the committee, made clear his view that the retailer should not be allowed to fail.
“Every report suggests Poundland is a viable, profitable business with a future ahead of it without good reason to let it crash and burn, and then break it up and sell it off piece by piece,” Mr Byrne said.
The political pressure on the American restructuring firm is intensifying at pace. With today’s deadline for a response to Xyra’s bid now just hours away, the fate of more than 10,000 workers hangs on what Gordon Brothers decides next.
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