Andy Burnham has said Poundland’s owners must work with the government on a “practical solution” to secure the future of its workers and shops.

The Prime Minister criticised Gordon Brothers, the US investment firm which owns the retailer, for failing to engage with the “viable propositions” which have been tabled by a number of bidders.

Downing Street’s intervention comes amid growing political pressure on Gordon Brothers, as figures from Labour and Reform UK have criticised the Poundland owner for the handling of its attempted sale of the company.

Burnham said: “[Gordon Brothers should] focus on the people in your employment. […] Come up with a practical solution that saves jobs and saves those stores because many of them are viable propositions.

“They’re on high streets. They matter in our communities. There is a solution to be found here. Sit down with us and let’s find it.”

On Tuesday, a Downing Street spokesperson said Gordon Brothers is “not acting in the best interests” of its 12,000 staff and 600 stores.

“Gordon Brothers need to explain why they haven’t accepted any offer to keep the company going. That’s the case,” they said.

Business secretary Jonathan Reynolds is due to meet with Gordon Brothers today while future of work minister Kate Dearden is set to hold talks with Poundland’s managing director and finance officer, Barry Williams and Shaun Wills, also on Wednesday.

Third solvent bidder emerges

Poundland’s owners turned down a solvent bid from Irish firm Martin Property Group because it did not offer up-front payment for a £30m loan which was inherited from the retailer’s previous owners, PepCo. 

Innovest, an Irish investment firm, had also tabled a solvent bid for Poudland. This offer proposed to pay for the £30m loan up front but it is not being considered because the bidder could not provide proof of funds. 

Robert Jenrick, Reform UK’s Treasury spokesman, told on Monday that he has been offering support to multiple Poundland bidders as he hit out at “greedy” Gordon Brothers.

On Wednesday, it emerged that another bidder is proposing to buy Poundland as a going concern. Xyra Group Holdings, a little-known investment group which has never bought a retailer before, said it would pay £12.5m up front for the company, as first reported by ITV News.

The bid is being considered by Gordon Brothers, according to sources familiar with the matter, although Xyra will need to provide proof of funds and reassure Poundland’s owners over its lack of retail experience.

The government has faced pressure to intervene to secure the future of Poundland’s workers but shadow chancellor Andrew Griffith said on Tuesday that Labour should avoid an “interventionist” approach and instead cut costs for employers.

Poundland filed a notice to appoint administrators on Thursday last week, making it more likely that the company will be broken up between a horde of buyers.

Retailers including Lidl, Tesco, Iceland, B&M, The Range and Poundstretcher are among those hoping to pick up some of Poundland’s stores if the firm collapses. 

Gordon Brothers believes it has found buyers for about half of Poundland’s 600 stores but is racing against time to find homes for the remainder of its estate before the moratorium lapses next Thursday, sources said.