Poundland has hit out at the “speculation” engulfing the company’s sale after a retail workers’ union dubbed its US owner an “absolute disgrace”. 

Usdaw, the union representing shop workers, said earlier this week that it has “deep concerns” about US investment firm Gordon Brothers’s sale of the business. 

Bally Auluk, Usdaw’s national officer, claimed Poundland’s owner had refused to meet with the union, adding that the company is on the verge of falling into administration, putting 12,000 jobs at risk.

“With thousands of jobs on the line it is an absolute disgrace that Gordon Brothers has failed to engage with us to seek a secure future for the business,” he said.

“We are aware that a management buy-out has been attempted and we are told that their offers are being turned down.”

But it is understood that Poundland’s management repeatedly offered to meet with Usdaw and received no response. Sources close to the company said it would be highly unusual for a shareholders of a firm to meet with a union, even during a takeover process.

Usdaw’s suggestion that Gordon Brothers has refused a proposal by Poundland’s management to buy out the company is also understood to be incorrect. 

Barry Williams, Poundland’s managing director, wrote to staff last week to tell them that press speculation over a management buyout option (MBO) was incorrect. 

The retailer’s management had instead expressed a preference for one of the bidders and was working with them on their proposal, it is understood. This bidder is Martin Property Group, the Irish firm, which recently bought National Car Parks (NCP) out of administration.

A spokesperson for Poundland told : “We understand these kinds of sale processes often lead to significant concern and speculation – much of it wide of the mark.    

“We have always had an open door to Usdaw and they know we’re focused on the recovery that’s now firmly embedded in the business.”

Poundland sale gains pace

Usdaw said they still expect a meeting with Gordon Brothers. The union’s Auluk told : “We are in constant contact with the management of Poundland, but it is the owners that are attempting to sell the business. 

“When there is the potential for major changes, we would expect those responsible to fully engage with the staff through their trade union.”

Gordon Brothers kicked off its sale of Poundland last month, little more than a year after buying the company for a nominal £1 fee from retail group PepCo. 

Advisors Alvarez & Marsal, who were appointed to run the sale, are weighing up bids from a number of buyers. These include proposals to carve up the business and offers for the entirety of the company.

Poundstretcher owner Fortress Investment Group and TG Jones owner Modella Capital are among the other parties who have expressed an interest in Poundland.

Gordon Brothers and Alvarez & Marsal declined to comment.