Xyra makes second rescue bid for Poundland, offering £12.5m upfront

Xyra Group has made a second bid to rescue Poundland, offering to pay £12.5m immediately towards a £30m loan on the retailer’s books, as its owner considers the chain’s future and thousands of jobs remain at risk.

The London-based group has offered to settle half the outstanding debt at once and defer the rest. It is seeking to buy the whole business, though it is unclear whether it would keep Poundland intact or break it up.

The offer follows a rejected bid from Ireland’s Martin Property Group. Gordon Brothers, which bought Poundland for £1 last June, said it was engaging with interested parties and would prioritise proposals that protect shops and jobs.

But questions remain about whether Xyra has the funds and the credentials to run the retailer as a long-term owner. The BBC said sources pointed to Andrew Brode’s appointment to Xyra’s board as a sign of credibility; Brode works for business AI solutions provider RWS.

The bid came as Business Secretary Jonathan Reynolds met Gordon Brothers to discuss the retailer’s future. The investment firm said it was pursuing options to protect as many jobs as possible and preserve value.

Poundland has 12,000 staff. Founder Steve Smith said two or three thousand suppliers that work solely for the chain could also be caught up in a collapse, potentially bringing the total number affected to 30,000. Suppliers have previously warned that the retailer’s failure could put their businesses at risk, as one major supplier told the BBC.