Poundland

Tuesday 3rd November 2026 Commons Chamber

12:47

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

(Urgent Question): To ask the Secretary of State for Business, Innovation, Science and Trade if he will make a statement on the situation at Poundland and potential actions to protect jobs.

[The Minister for the Future of Work (Kate Dearden)]

I declare my interest as a member of the Union of Shop, Distributive and Allied Workers.

I am deeply concerned about the uncertainty surrounding Poundland’s future, and the impact that could have on its thousands of staff and their families, who are at the forefront of my mind, especially in the run-up to Christmas. Poundland is not currently in administration and the business continues to trade, but this is a worrying time for employees, suppliers and communities. We are establishing the facts, keeping in close contact with those involved and monitoring developments closely.

The Secretary of State and I continue to engage closely on this issue. We have met and are in ongoing contact with the trade union USDAW, which I know is extremely concerned about the jobs and livelihoods of its members, and I thank it for its work and engagement. We will be meeting Barry Williams, the managing director of Poundland, this week. Earlier this week, officials met Gordon Brothers, and the Secretary of State is due to meet it to continue to press our concerns and establish the facts. However, there are ongoing commercial negotiations concerning this private business, and it would not be appropriate for the Government to seek to influence the outcome or comment on the merits of individual bids.

The owners should act in the best interests of their loyal UK staff and stores. We want the best possible outcome for Poundland’s workforce and the future of the business. The 12,000 staff and many thousands of suppliers are at the forefront of our minds, and we want to see an outcome that protects as many jobs as possible and keeps as much of the business trading as possible. The Government stand ready to ensure that affected employees can access the appropriate support, should it be needed.

The Prime Minister has set out his aspiration to bring good growth to every postcode, including by making high streets a new symbol of Britain’s renaissance. Last week, the Government published our high streets strategy, which goes further and sets out the principles for high street success, practical support for businesses with the business rates system and more policies to support vibrancy and footfall. That includes establishing a “high streets first” principle to ensure that public estate locations drive footfall and opportunities to co-locate public services.

The fundamentals for doing business in the UK are strong. Our economic strategy to deliver growth is investment across the public and private sectors and in every postcode. Our industrial strategy, trade strategy, small business strategy and plan to make work pay address long-standing barriers to growth. Retail is vital to employment and the economy, and we recognise that the sector has been through a significant period of change. We want all types of retail to thrive, now and in the future, so we are working closely with businesses to understand what they need to succeed and grow. The Minister for Employment and I are providing a briefing for Members of Parliament in this House this afternoon on the support available to employees who may be impacted.

I want to emphasise that in the event that a retail company enters administration, my officials will work, where appropriate, with the administrators, the Department for Work and Pensions, the Insolvency Service and local partners to ensure that appropriate support is available to affected employees. We stand ready to support them if they need to move into new employment. However, our priority is always protecting jobs, and the Secretary of State and I will continue to engage with the company to secure the best possible outcome.

[Gareth Snell]

Thank you, Mr Speaker, for granting this urgent question. I thank the Minister for the tone and content of her answer.

At the heart of this matter are the 11,000 people whose jobs, through no fault of their own, hang in the balance, and who do not know whether they will have a job at all this side of Christmas. Those jobs are not concentrated in a big factory, but dispersed across this country in towns such as Hanley in Stoke-on-Trent and in your constituency of Chorley, Mr Speaker, as well as in the supply chains and distributors in Makerfield and Harlow, which my hon. Friend the Member for Harlow (Chris Vince) talked about. This company has survived because the workers turned it around.

We are in the situation that we are in today because choices have been made by Gordon Brothers. It has rejected solvent bids and is seeking to push a company into administration for its own personal profit. Fundamentally, its interest does not appear to be the 11,000 constituents we all represent, who take home money to look after their kids, put food on the table and live the life that they deserve. I am very glad that the Minister continues with meetings, but the management of Poundland is not the problem; it is Gordon Brothers.

If we get to a point where administration takes place and 11,000 jobs and supply chain jobs are put at risk, what levers can the Minister use to save as many jobs as she can? What pressure can this House, through her, put on the owners to accept one of the solvent bids in order to protect jobs? What can this House do to send a message to Gordon Brothers that its predatory capitalism when it comes to this company will not be tolerated? We in this country will always stand with people before profit.

[Kate Dearden]

I thank my hon. Friend for his reflections and comments on behalf of his constituents and the many employees across the country. It is deeply concerning to see the uncertainty about Poundland’s future. That is why the Secretary of State, the Prime Minister and I have been keeping a close eye on this extremely worrying situation for staff, their families and communities up and down the country. We have been demanding to know what is happening, and demanding that Gordon Brothers explain why it has not accepted any offer to keep the company going.

We continue to establish the facts. Last night, officials met Gordon Brothers as part of our ongoing engagement. The Secretary of State will meet it later this week, and I am meeting Poundland tomorrow. It is absolutely legitimate for this Government to ask the business if it is doing everything that it can to protect employees and suppliers up and down the country.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Minister.

[Bradley Thomas (Bromsgrove) (Con)]

For thousands of Poundland workers, the question today is simple: “Will I still have a job?” Behind every store facing uncertainty are workers—real people with bills to pay and families to support. As a west midlands MP, this issue hits close to home—the headquarters are in the region. For thousands of shoppers who rely on this store to make their money stretch further as the cost of living worsens, the question is also simple: will they still have a local, affordable place to shop as Christmas approaches?

Workers and customers deserve clear answers about what happens next. Why was a proposed management-backed rescue bid rejected? Can an agreement still be reached? If individual stores are sold, will their employees keep their jobs? When will communities learn whether their local branch has a future?

The current economic landscape is hostile to British business. Given the stifling red tape, skyrocketing energy bills and surging employment costs, another well-known British brand being in trouble feels less like a surprise and more like an inevitability. Rather than admitting that their own vindictive policies have driven the cost of doing business to an unsustainable breaking point, the Government are instead locked in a desperate squabble with Reform over who can intervene the most to engineer a state-sponsored rescue. The reality is clear: increased political interference is a failed strategy that offers nothing but false promises to workers and consumers alike. True security cannot be micromanaged into existence by Whitehall.

If the Government genuinely want to revive our economy, they must start dismantling the barriers to growth that they have put in place since taking office. Running a business should be an ambitious pursuit, not a high-stakes gamble against state-induced risks. That is why, rather than looking to interfere in yet another business dispute, the Government should focus on slashing the unnecessary red tape that is suffocating businesses; lower business rates, which hinder high street growth; reduce the cost of employment and make it rewarding to invest in people; deliver the lower energy prices that businesses across the nation are calling for; and get tough on the wave of shoplifting plaguing our high streets. Rather than looking to stifle businesses’ every move, we must protect workers’ livelihoods by allowing businesses to get on with driving economic growth and employing people.

[Kate Dearden]

I must say that I am quite disappointed by the tone of the shadow Minister. Vindictive economic policies and a squabble with Reform—is that his answer to the 12,000 people and the thousands of suppliers across the country whose jobs are at risk in the run-up to Christmas?

The hon. Gentleman says that the Government should stop interfering with another business, but that is exactly not what we are doing; he would know that if he had listened to my statement. We are not interfering with the auction. There are ongoing commercial negotiations about this private business, and we do not want to impede or influence that process or comment on individual bids, as I said. It is legitimate for the Government to ask a business whether it is doing everything that it can to protect employers and suppliers, in order to get clarity about its plans and a clear understanding of the situation. Business owners have a responsibility to their employees—in this case, 12,000 of them across the country. It is right for us to put pressure on the company. Ownership brings responsibilities as well as rights.

We are clear as a Government about our expectations; we are taking a responsible approach, not a “sit by and do nothing” approach. What would be the point of politicians and Government if we took that approach?

[Madam Deputy Speaker (Caroline Nokes)]

I call the Chair of the Business, Innovation, Science and Trade Committee.

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

Some 30,000 jobs are at stake in Poundland and its supply chain. Internal documents that we saw at the weekend show that the business’s sales, margins and profitability are ahead of target. Is the Minister absolutely convinced that Poundland’s directors are fulfilling their fiduciary duty and acting in the best interests of Poundland, or are they acting in the interests of a faceless American investment firm? If the loan of up to £60 million that was raised and imposed on Poundland is the barrier, will she take steps to ensure that we are doing everything we can to restructure it, so that it is not a barrier to saving Poundland’s business?

[Kate Dearden]

I thank my right hon. Friend for his remarks and for his close engagement on this issue over the past couple of days. We know how concerning this situation is for employees across the country. As he knows, we are still working behind the scenes, and Poundland, Gordon Brothers and the Secretary of State will be engaging this week, because we still hope that we can secure a good outcome from the process. That is why we are in close contact with the company and receiving regular updates on many of the points that my right hon. Friend has alluded to. We will of course keep him as updated as we can; I cannot go into all the details at the Dispatch Box today, but I hope he is reassured about our concerns, and that we will remain engaged with Gordon Brothers and the company going forward.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

The news about Poundland will be deeply worrying for its 12,000 staff members and their families, for the 30,000 staff overall when we include the supply chain—as the Chair of the Select Committee has said—and for the communities in which its stores are located. As Poundland’s founder, Steve Smith, has said:

“Once these jobs are lost, they are lost”.

For many families, Poundland is one of the few affordable options left. People are already struggling with an unsustainably high cost of living, and they now face losing somewhere that they rely on to make their money go further.

The fall of Poundland raises bigger questions about our high streets. Its troubles show how much pressure both shoppers and high street businesses are under. The Prime Minister has set out his ambition to revive the high street, but the collapse of one of the UK’s most well-known and affordable retailers highlights the extent to which our high streets are struggling. The business rates system puts our high street shops at an unfair disadvantage compared with online retail giants, and the national insurance hike imposed by this Government is unfair and counterproductive. With unemployment levels already alarmingly high, will the Minister now listen to the Liberal Democrats’ calls to properly overhaul the broken business rates system and scrap the unfair jobs tax—at the very least, for part-time workers?

[Kate Dearden]

The UK retail market is rated one of the most advanced e-commerce markets in the world; that has to be celebrated, and we do so. Physical retail remains a key part of the high street, and a thriving high street will need a strong retail offering. We are clear that we want all types of retail to thrive, now and in the future. The hon. Member heard our announcements last week—our commitment to our high streets strategy and our announcements on business rates reform—which will support many businesses in her constituency and all across the country. We are committed to work with the sector as closely as we can, so that it can grow and succeed. In the particular case of Poundland employees, I hope the hon. Member has heard about our concerns and engagement and how closely we are working with them.

[Antonia Bance (Tipton and Wednesbury) (Lab)]

I am standing here on behalf of the workers in Tipton centre and on Union Street in Wednesbury, all of whom provide a vital service to my constituency. If it emerges that a viable bid to keep Poundland intact was blocked, putting 12,000 jobs at risk, what specific powers will the Secretary of State use to hold Gordon Brothers to account? Will the Minister now establish an urgent review of whether our corporate governance and insolvency frameworks give sufficient protection against asset stripping and short-term financial engineering at the cost of jobs and our high streets?

[Kate Dearden]

I thank my hon. Friend for her question, and for standing up for her constituents and the importance of Poundland to her local high streets and those across the country. It is absolutely legitimate for the Government to be asking the business to do everything it can to protect employees and suppliers, which is why we are seeking clarity on its plans and a clear understanding of the situation. Officials have met Gordon Brothers this week, as the Secretary of State will do, and I will meet Poundland tomorrow. As my hon. Friend rightly mentions, it has a responsibility to its employees—12,000 of them, and thousands more among its suppliers. We will keep putting pressure on the company. Ownership brings responsibilities as well as rights.

[Richard Tice (Boston and Skegness) (Reform)]

Today the Tory party has shamefully said that it does not give two hoots about 12,000 workers, including dozens in my constituency. What is going on here is that the management of Poundland are very concerned that the owners of Poundland are looking to abuse the insolvency process to maximise their financial returns, not giving two hoots about 12,000 workers. Will the Minister confirm that the Government will do everything they can to ensure that Gordon Brothers will not act as a rogue owner by abusing the insolvency process?

[Kate Dearden]

As the hon. Member knows, the appointment of an administrator is a matter governed by the statutory insolvency process; it is not a decision for Government. However, I hope that he has heard my remarks today about our engagement with Gordon Brothers and Poundland for the sake of those 12,000 employees up and down the country and the many more employed by its suppliers. We want to do everything we can, and to make it clear that jobs are our absolute priority in this situation. They are so important for our high streets up and down the country, which is why this Government have taken the responsible action we have taken so far, and we will continue to do so.

[Valerie Vaz (Walsall and Bloxwich) (Lab)]

I, too, am a member of USDAW the union. My constituents want to work for Poundland, and they have helped it turn a profit at Midland Road in Walsall. Can the Minister ensure that USDAW is at the table in any negotiation? It has struck deals with Ikea and John Lewis, and its knowledge is valuable.

[Kate Dearden]

I pay tribute to USDAW for its work, and for its engagement with members and the Government; I know how concerned it is about its members’ jobs and livelihoods. We have engaged with it closely throughout this process, and we will continue to do so. USDAW will join me in my meeting with Poundland tomorrow.

[Sir Julian Lewis (New Forest East) (Con)]

The great majority of the more than 300 online reviews of the Poundland store in Totton in New Forest East give it a five-star or four-star rating. I think the most concerning part of the question from the hon. Member for Stoke-on-Trent Central (Gareth Snell) was his concentration—rightly—on the apparent rejection of viable, solvent bids. If ever there were a case of potential asset stripping, this would appear to be it, and if the Government cannot intervene, surely trade unions and their legal advisers have a positive role to play?

[Kate Dearden]

I am thrilled to hear the right hon. Member talk about the important role of trade unions—something I talk about constantly at the Dispatch Box, so it is quite refreshing to hear it repeated back to me. Of course, I cannot speak about what exactly USDAW’s legal advice is or what it is doing, but as the right hon. Member will have heard me say, we are meeting both USDAW and the business. Obviously, USDAW is standing up for its members, who are really concerned about their livelihoods in the run-up to Christmas. I thank it for that, and for its continued engagement.

[Johanna Baxter (Paisley and Renfrewshire South) (Lab)]

We have three Poundland stores across Paisley and Renfrewshire South—one in Paisley itself, one in Linwood and one in Johnstone—and I have been contacted by many Poundland employees who are concerned about the current situation. One of them is Dawn. She has worked for Poundland for 21 years and has been a loyal and hard worker. She is now 64 years old and is very concerned that if she loses her job now, so close to retirement, she will be in a very vulnerable position and unable to get another job before retirement. What assurances can the Minister provide to employees in such circumstances?

[Kate Dearden]

I thank my hon. Friend for raising the concerning case of her constituent, and those of others she represents. She is right to raise those cases today. We are seeking clarity on the business’s plans and a clear understanding of the situation. The Department has met Gordon Brothers this week; the Secretary of State will do so, and I will also meet Poundland this week. Business owners have a responsibility to their employees—to my hon. Friend’s constituents in this case, and to thousands of others across the country. I know how concerned they will be, and we share those concerns.

[Chris Law (Dundee Central) (SNP)]

The news that Poundland has filed a notice of intention to enter administration will cause deep concern to the many thousands of employees whose jobs are in jeopardy and the millions of customers who rely on its low prices. With almost 50 stores in Scotland, including the Poundland in my city of Dundee, my thoughts are with the many families who are now worried about jobs and livelihoods at the worst possible time, the run-up to Christmas. Given that discount retailers would normally be expected to perform strongly during a cost of living crisis, does the Minister recognise that Poundland’s potential administration is yet another damning failure of this UK Government to improve consumer confidence and the health of UK high streets, and to alleviate the financial pressures facing low-income households?

[Kate Dearden]

Business investment grew by 4.8% in the first half of this year, productivity has grown for six consecutive quarters, GDP grew for the first half of 2026, the Office for Budget Responsibility has upgraded its 2026 growth forecast, and whole-economy investment has increased by 6.9% since the start of this Parliament. Let us not go into the back and forth of what our economy is doing; we have a good base for businesses to grow and start up here in our country, and we are proud of it. It is those Poundland employees—the thousands in Scotland who the hon. Member has referred to and the others across the country—who are our priority, and that is what we are working on this week, engaging with the company in a responsible way, as we would all expect a Government to do. We want to protect those jobs and livelihoods.

[Clive Efford (Eltham and Chislehurst) (Lab)]

I welcome the question asked by my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell). What we have here is an American private equity firm that is able to buy a going concern that is present on many of our high streets; to put its desire for profit above the interests of its workers, as well as the 18,000 workers in the supply chain; and to make a mockery of the Government’s plans for our high streets. If there is a viable bid on the table and we do not have the power to ensure that it is prioritised, why do we not have that power?

[Kate Dearden]

I am proud of our plans for high streets and the announcements the Chancellor made in the Budget last week for businesses across the country. As a Minister, I am proud to work with our retail companies and sectors all across the country to support them to grow and thrive. As I have mentioned, we are committed to asking the company to do everything it can to protect employees and the thousands of suppliers across the country. That is why we are seeking clarity on the situation and the company’s plans. My hon. Friend will have heard me discuss the meetings we are having this week and reiterate that businesses have a responsibility to their employees. It is right for us to put pressure on the company, because we have a responsibility to do so, and ownership brings responsibilities as well as rights.

[Wendy Morton (Aldridge-Brownhills) (Con)]

Poundland is headquartered in Walsall and, as one of the borough’s MPs, I am concerned about the impact this situation is having not just on employees, but on business confidence and our communities. I fear that it is symptomatic of some of the Government’s failed policy choices, but for today I want to focus on the employees. What exactly are the Government doing? When the Minister talks about “appropriate support” for employees, what exactly does she mean?

[Kate Dearden]

Mayor Richard Parker is ready to stand up support and resource for those in the region who might be impacted. We are working closely with the Department for Work and Pensions, as we always would in such situations, to ensure that we can support employees with training and future job prospects. My priority at the moment is the conversations we are having with Gordon Brothers, Poundland and USDAW. We know how extremely worrying the situation is for staff, families and communities. That is why we are rightly taking the responsible approach to engage with them and to protect jobs.

[Paulette Hamilton (Birmingham Erdington) (Lab)]

Constituents in Birmingham Erdington appreciated having Poundland—we had three Poundland stores, but two have closed in the past year. What assessment has the Department made of the private equity acquisition model, whereby a £30 million shareholder loan is prioritised over a solvent sale?

[Kate Dearden]

My hon. Friend will have heard me say that we are demanding to know what is happening. In particular, we want Gordon Brothers to explain why it has not accepted any offer to keep the company going and how it will be acting in the best interests of Poundland’s loyal UK staff and stores. We continue to establish the facts. Last night, officials met Gordon Brothers as part of the ongoing engagement, which includes my engagement this week with Poundland and the Secretary of State’s engagement with Gordon Brothers. There are ongoing commercial negotiations about a private business, and we do not want to impede or influence that process. I hope she has heard my concerns and our priorities for how this Government respond.

[Alison Bennett (Mid Sussex) (LD)]

I have not been contacted by any constituents who work for Poundland, because the store in Haywards Heath closed in February. Roll forward to November, and that large unit—an anchor unit for the whole high street—is still lying empty. What is the Government’s plan to reform business rates in order to support these large units that prop up the rest of our high streets?

[Kate Dearden]

I am sure that the hon. Member welcomed the Chancellor’s announcements on business rates last week, which included introducing a two-year real-terms freeze for all retail, hospitality and leisure properties to help with increased inflation. We are also removing 70,000 extra properties from business rates, meaning that half of all RHL properties will pay no business rates at all. High streets are the beating heart of our communities and are so important for local people and jobs. We are committed to tackling their decline with our high streets strategy and so many other initiatives in partnership with the sector. We want to back our high streets, back the jobs and back the businesses that support them.

[Josh Newbury (Cannock Chase) (Lab)]

On behalf of the staff who work at the Poundland stores in Cannock town centre and the Linkway retail park, I find this news particularly shocking, particularly given that the company recently announced a return to like-for-like sales growth and thanked staff for their “amazing efforts”. Does the Minister agree that, in the light of efforts to rescue Poundland being rebuffed, Gordon Brothers needs to get around the table with USDAW, managers and creditors to save this iconic staple of our high streets?

[Kate Dearden]

I agree with my hon. Friend about the importance of jobs and the uncertainty that lots of the employees are working through with the union. I pay tribute to them for all their work. We are committed to engaging with all stakeholders as much as we can, and we are making our priorities clear. We want the company to do everything it can to protect employees and suppliers. We are seeking clarity on its plans and a clear understanding of the situation.

[Sir Ashley Fox (Bridgwater) (Con)]

The Poundland in Bridgwater closed in July. While the Minister is right to prioritise protecting jobs, will she accept that having introduced a £25 billion jobs tax, having added 350 pages of regulation in their unemployment Act and having delivered above-inflation rises to the minimum wage, it is her Government who are responsible for creating a hostile economic environment for British retail?

[Kate Dearden]

I am sad but not surprised to hear that response from Opposition Members. Their answer to a situation that is really worrying for 12,000 employees and so many more in the supply chain is to roll back rights for working people. That is not our answer. We are getting round the table and trying to protect jobs, as a responsible Government rightly should.

[Mary Creagh (Coventry East) (Lab)]

Poundland is a proud west midlands business and its three stores in Coventry provide fantastic products at reasonable prices to my constituents. Its workers have been writing to me with concerns over their futures. Poundland’s 12,000 workers will be contributing tens of millions of pounds in tax and national insurance to the Exchequer each year. Is there not a case for this activist Government to stand behind any management buy-out, or buy-in from any bidder, and ensure that these workers continue to play their part in retail on our high streets, in the way that the Government have done through the nationalisation of British Steel and through the loan facility offered to Jaguar Land Rover last year?

[Kate Dearden]

My hon. Friend is right to raise the impact of the cost of living, particularly on those who rely on shops like Poundland. She is also right to bring the direct feedback, worries and concerns she has heard from her constituents to the Chamber today—I thank her for raising that directly with me. We want to hear that the business is doing everything it can to protect her constituents and employees and suppliers all across the country, so we are seeking clarity on its plans so that we can understand the situation. The process is still under way. It is an evolving situation, and we are continuing to engage this week. I hope she is reassured by our commitment to do that. We want to understand the situation, and we are making clear that the business has a responsibility to its thousands of employees and to her constituents.

[Hannah Spencer (Gorton and Denton) (Green)]

The Poundland in Denton expanded in 2022 and now employs 55 staff, several of whom have got in touch with me in the last few days and all of whom now find their livelihoods at risk as we begin the run-up to Christmas. I give credit to the union USDAW for its work on this issue. Does the Minister agree that this scandal exposes a serious problem? Our economy is vulnerable to private equity vultures, who sweep in and prey on our high street brands by loading them with debt and trying to ditch them for a profit.

[Kate Dearden]

The reports about Poundland’s future are deeply concerning, which is why the Secretary of State, the Prime Minister and I have been keeping a close eye on what is happening. This is an extremely worrying situation for the hon. Member’s constituents and for staff across the country, their families and communities. We have been demanding to know what is happening and how the company will act in the best interests of its loyal staff and workforce. We will continue to establish the facts this week and in the future, and we will make our priority clear, which is to protect jobs.

[Mr Jonathan Brash (Hartlepool) (Lab)]

Like the Minister and Members across this House, my first priority is the staff of Poundland, including in the Hartlepool store at Middleton Grange shopping centre. Sadly, the same cannot be said for Gordon Brothers. Let us be clear that this organisation has form on this issue. Does the Minister not think it is time that we prevent these predatory capitalist vultures from making their profits off our people’s backs?

[Kate Dearden]

Keeping the business trading and protecting jobs are the key things, as my hon. Friend rightly says. We are therefore continuing to watch the situation closely, and the Secretary of State, the Prime Minister and I have made that clear. The company needs to account for why it has not accepted an offer to keep the company going and explain how it is acting in the best interests of the workforce. We will continue to have those conversations, and that engagement is important for us as a Department and for the Government.

[Claire Young (Thornbury and Yate) (LD)]

This is a hugely uncertain time for workers at Poundland in Yate, and I am sure that I am not alone among MPs in finding the DWP one of the hardest Departments to get answers out of. I am concerned about the practical support that the local jobcentre will be able to offer Poundland workers who lose their jobs. Can the Minister assure me that jobcentres will support those people?

[Kate Dearden]

The Department for Work and Pensions stands ready to support anyone affected by this announcement with our rapid response service offer. The service is designed to give support and advice to employers and their employees when they are faced with redundancy. The Minister for Employment, my hon. Friend the Member for Stretford and Urmston (Andrew Western), will be having a meeting with all Members, including me, later this afternoon, and the hon. Lady may wish to come and put further questions to me or to my hon. Friend from the DWP.

[Rachael Maskell (York Central) (Lab/Co-op)]

Among the 12,000 Poundland workers whose jobs are now at risk are those based at Low Petergate in York. In the light of Gordon Brothers’ egregious conduct, will the Minister look into the role of private equity companies in the retail sector? In the past two weeks Modella Capital has closed TG Jones in our high street, and we see this behaviour repeatedly from such companies. Will my hon. Friend consider regulations that we could debate in the House to ensure that we protect the retail sector?

[Kate Dearden]

I thank my hon. Friend for her reflections on what she feels needs to change in the future. At this stage, the key priority is keeping the business trading and protecting jobs, and she will have noted our commitment to engagement. We do not want to impede or influence ongoing negotiations around a private business, as the process is live and constantly moving. I hope my hon. Friend will be reassured about my engagement and that of the Secretary of State with the business and the union representatives this week, and we will continue to watch the situation closely, but protecting jobs is the absolute priority of this Government.

[Sammy Wilson (East Antrim) (DUP)]

Employees in the Poundland stores in Carrickfergus and Larne in my constituency are now facing a bleak economic future, all because of what appears to be asset stripping of the stores and Poundland by Gordon Brothers. However, there is an alternative. Sales are up, profits are up, and there are viable investors wishing to take over the stores. Specifically, what pressure is the Minister putting on Gordon Brothers to do the right thing? Will she assure us that she will not hide behind the excuse that this is a commercial decision which the Government cannot do anything about?

[Kate Dearden]

I hope that the right hon. Member is reassured about the work and commitment that we are undertaking as a Department, whether we are engaging with USDAW, with Poundland or with Gordon Brothers. Business owners have a responsibility to their employees—12,000 of them, in this case—and to many thousands of suppliers across the country. That is why it is right that we put pressure on the company. Ownership brings responsibilities as well as rights, and it is therefore legitimate for us to ask it whether it is doing everything that it possibly can to protect its employees and suppliers up and down the country.

[Mr Clive Betts (Sheffield South East) (Lab)]

I thank my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell) for asking the urgent question and for putting very relevant questions to the Minister. Everyone at work at the three Poundland stores in my constituency today will be worried that they will not be in a job tomorrow. It is good that the Minister is talking about how she can help people into jobs if Poundland shuts, and it is good that she is putting pressure on Gordon Brothers, but is she actively considering what proactive measures she can take to intervene and stop closures from happening if that pressure ultimately fails?

[Kate Dearden]

This is obviously a very concerning time for many employees in my hon. Friend’s constituency and in constituencies across the country, and they are at the forefront of our minds. That is why we are asking the business to do everything it can to protect employees and suppliers, and why we need to keep understanding the clarity of its plans and to have a clear understanding of the situation. The meetings we are having this week are important in enabling us to assess that, and to ensure that the company observes its responsibility to its employees. As I have said, there are 12,000 of them—a significant number—and we want to protect them.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for her responses to all the questions that have been asked so far. The potential collapse of Poundland places more than 12,000 hard-working staff at risk across the United Kingdom, including the high streets in Northern Ireland and my constituency of Strangford. Independent estimates suggest that up to 30,000 jobs could ultimately be lost once the wider supply chain and high street neighbours are taken into account. What specific discussions is the Minister having with Administrations and local enterprise agencies across the United Kingdom to guarantee that workers in Northern Ireland are not left behind in any restructuring, and to ensure that these vital retail jobs are protected?

[Kate Dearden]

I thank the hon. Member for asking that question, on behalf of his constituents, about the impact on his local high street. I hope he is reassured about our commitment to putting pressure on the business to ensure that it understands its responsibility to its employees in his constituency and others that are represented here today. It is right for us to do that, because we too have a responsibility and we take responsibility, as well as rights, extremely seriously, as the ownership should. The hon. Member will know of our meetings this week, and our continued engagement will make that very clear.

[Sonia Kumar (Dudley) (Lab)]

High streets such as Dudley’s face pressures from online shopping and rising costs. Too many units have stood empty for years, weakening footfall and confidence, and the potential loss of Poundland and 15 jobs in my constituency could blow another hole in the high street. However, this is not just about my 15 employees; a ripple effect of the potential closure could cause problems in the supply chain as well. Has the Minister assessed the full impact of the closures across Poundland, across the country and across the supply chain in order to hold Gordon Brothers to account?

[Kate Dearden]

I share my hon. Friend’s concern for her constituents and those across the country. This is a very worrying time for them. We are therefore taking a responsible approach, engaging with Poundland, Gordon Brothers and USDAW to ensure that jobs are protected as much as they possibly can be, to understand the situation and demand to know what is happening so we can make that assessment, and to ensure that the company is acting in the best interests of its loyal UK staff and workforce. I thank my hon. Friend for sharing those reflections today.

[Derek Twigg (Widnes and Halewood) (Lab)]

The current situation is not the Government’s fault, and it is certainly not the fault of the excellent employees at Poundland. It is the fault of the worst type of greedy capitalism. A number of my constituents have contacted me about the situation, and what they want to know from the Government is what robust response they are giving the owners. My constituents want to be assured that no stone will be left unturned, and they want to know what options the Government can pursue.

[Kate Dearden]

What is key is ensuring that the business continues to trade, and that we protect those vital jobs up and down the country, including those in my hon. Friend’s constituency. That is why we are watching the situation so closely. As I have said, Gordon Brothers must account for why it has have not accepted an offer to keep the company going, and explain how they are acting in its best interests. Those 12,000 staff are at the forefront of our minds. It is a really worrying time, in the run-up to Christmas, and we will be doing everything we can in our conversations to make our position clear. We have to protect those jobs for the future, and we want to see the business continue to trade in order to do so.

[Jim Dickson (Dartford) (Lab)]

The Poundland store in Dartford forms an important part of the shopping offer at the Priory Centre, as well as the wider town centre. It employs local people, who will be desperately worried about their future in terms of their jobs and the continued survival of Poundland itself. Is it not clear that the Government cannot look on while a solvent company goes under, as the Opposition parties appear to be recommending that we do?

[Kate Dearden]

My hon. Friend is entirely right. We are not just sitting back. I ask again, what would be the role of politicians and this Government if we were to do that? We are taking our responsibility seriously, and it is legitimate for us to ask the business to do everything it can to protect employees and suppliers. We are seeking clarity on its plans and trying to gain a clear understanding of the situation, which is exactly what a responsible Government should do in these circumstances.

[Claire Hazelgrove (Filton and Bradley Stoke) (Lab)]

Let me first declare an interest as a proud member of USDAW.

I share the support for valued Poundland workers across the country at this time of great uncertainty for them, including those in the Emersons Green branch in my constituency. Local people work hard, day in day out, for this profitable company, and deserve so much better than the worry of possible job losses that are no fault of their own, but the result of inaction on the part of the owners. What reassurance can the Minister give me, and those valued local workers, that the Government are doing all they can now, and will review regulations and processes to establish whether poor owner behaviour can be further protected against in future?

[Kate Dearden]

I thank my hon. Friend for raising this issue in the House. She is absolutely right, and I share her concerns for her constituents and for the thousands of families and employees across the country who are really worried about the future of their jobs. We have been standing ready to take action to support workers and reassure families wherever we can. We want the best possible outcome for the workforce and the future of the business. That is why we are working hard behind the scenes to protect jobs, and we will continue our engagement this week. It is a real priority for us, and I want to work closely with the business and the unions.

[Alistair Strathern (Hitchin) (Lab)]

My fair-minded constituents are rightly appalled at the news that the jobs of our local shop workers in Poundland are being put at risk by exploitative owners who appear intent on asset stripping, rather than preserving a store that has been returned to profitability thanks to the staff’s hard work, and which has viable offers on the table. How can we make sure that, as a Government, we are using all the levers at our disposal to force the American owners to do right by the stores? What lessons do the Government think we might need to learn to ensure that we can do a better job of protecting our high street assets in the future?

[Kate Dearden]

My hon. Friend is absolutely right to raise concerns on behalf of his constituents and those across the country who are really concerned about the future of their employment. We have been seeking to clarify the business plans and get a clear understanding of the situation, because it is absolutely legitimate for a Government to ask a business to do everything it can to protect its employees and suppliers. Of course, this is an evolving situation, and we will continue to engage with Poundland, Gordon Brothers and USDAW this week, to make sure that we can have the best possible outcome for the workforce and the future of the business.

[Tom Hayes (Bournemouth East) (Lab)]

I called at the Poundland store in the Sovereign Shopping Centre a few days ago to check in on the team, speak to the manager and find out how they are doing. Unsurprisingly, they are living with extreme uncertainty. Will the Minister speak directly to the employees of Poundland in Bournemouth and let them know exactly what this Government are doing to support them and save their jobs? After all, they just want to earn a good wage, put food on the table and be able to afford presents under the Christmas tree.

[Kate Dearden]

I thank my hon. Friend for raising that very concerning situation on behalf of his constituents in Bournemouth, and I acknowledge that hundreds of jobs are at stake. I hope he takes some reassurance from my remarks at the Dispatch Box, because this Government intend to do absolutely everything we can to ensure that the business is doing everything it can to protect his constituents’ jobs and thousands of suppliers’ jobs across the country. We want the best possible outcome for the workforce and the future of the business, which is why we are working with the company and the union to protect those jobs.

[Brian Leishman (Alloa and Grangemouth) (Lab)]

I thank the Minister for her answers, and my thoughts are with all the staff at the Alloa store. What is happening with Poundland is the latest example of private equity being allowed to do as it pleases—the type of behaviour that, frankly, has destroyed our high streets. Both the UK and Scottish Governments need to act to stop private equity raiding our towns and then upping sticks when it has decided that there is nothing else to extract. Will the Government take decisive action, and take steps such as curbing profit shifting and tax abuse by private equity?

[Kate Dearden]

My hon. Friend is absolutely right to raise business owners’ responsibilities to their employees. In this case, there are 12,000 of them across the country, including many in his constituency, as well as suppliers. That is why it is right that this Government are putting pressure on the company. It has responsibilities to their employees, who also have rights, and that is why we are asking the owners to do everything they can to protect employees and suppliers. I will continue our engagements this week, because it is a real priority for us.

[Gerald Jones (Merthyr Tydfil and Aberdare) (Lab)]

I, too, declare my proud membership of USDAW. Poundland workers in Merthyr Tydfil, like elsewhere, are deeply concerned about their futures. The workforce have given absolutely everything to the company to make it profitable. Can the Minister give further reassurance about what more the Government can do to ensure that Gordon Brothers does absolutely everything at its disposal to support the workforce, and to treat them with fairness and respect?

[Kate Dearden]

My hon. Friend is absolutely right to raise the hard work of the workforce and their dedication to their jobs and the business. In our engagements with the company, we have been very clear about its responsibility to its employees and the need to protect jobs, because this is a really concerning situation for so many across the country. We will continue to work with USDAW and discuss its members’ concerns, particularly at this difficult time in the run-up to Christmas. We are a responsible Government who will do everything we can to speak to the union and the business. We know how vital the jobs at Poundland and other high street shops are, including for his constituents. I thank him for raising this issue.

[Chris Vince (Harlow) (Lab/Co-op)]

I thank the Minister for her statement, and my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell) for asking the urgent question. Harlow is home not only to two Poundland stores but to a distribution centre that employs hundreds of people. Does the Minister share my concern that the owners are not acting in the best interest of Poundland employees in Harlow, particularly by rejecting legitimate bids for the business? Will she join me in sending heartfelt messages to Frederick, Jody, Donald, Katarzyna and Jordan—who have personally written to me—as well as other employees at Poundland in Harlow? Is there anything the Minister can do—I declare an interest as a proud member of USDAW—to engage with USDAW and ensure that it is at the table for discussions with the owners?

[Kate Dearden]

I thank my hon. Friend for rightly raising the concerns of his constituents who work at the Poundland stores and the distribution centre in Harlow. I absolutely share those concerns, which is why we are taking a responsible approach by engaging with Gordon Brothers, Poundland and the recognised union, USDAW, which is concerned about the impact on its members and their livelihoods. I will be meeting representatives of Poundland tomorrow, and USDAW will be part of those conversations. It is really important that we reiterate the importance of these jobs, and that we make sure the business can succeed in the future and protect as many jobs as possible.

[Dave Robertson (Lichfield) (Lab)]

Last week, workers in Lichfield woke up, put on their uniforms, went to work and were told that their jobs were under threat—not because the company is not viable or profitable, but because the company’s owner, Gordon Brothers, is choosing not to do the right thing. It is choosing to put jobs at threat for its own selfish interests. I know the Minister and USDAW are working really hard on this, but can she give the House a reassurance that everything will be done to make sure that Gordon Brothers steps up, does the right thing and backs its workers? It is the workers who have turned the business around, not the owner, and it is time that Gordon Brothers recognised that and backed those workers.

[Kate Dearden]

We absolutely back the workforce and thank them for their hard work and dedication to the business. That is why we have been engaging with the company and the union this week, and why we are encouraging the owners to act in the best interests of their loyal UK staff and stores. The Secretary of State, the Prime Minister and I have been keeping a close eye on what is an extremely worrying situation for the staff, their families and our wider community. I thank my hon. Friend for his question, and hope that he is assured about our commitment, engagement and work on this issue this week. We will keep him as updated as we can.

[Gareth Snell]

On a point of order, Madam Deputy Speaker. I should have put on record my membership of USDAW at the beginning of the urgent question, and I apologise to the House for inadvertently failing to do so.

[Madam Deputy Speaker (Caroline Nokes)]

I thank the hon. Member for putting that on the record.