// BBC BUSINESS NEWS — FINANZA
Second buyer makes rescue bid for Poundland as retailer faces collapse
A second buyer has made a rescue bid for Poundland as the discount retailer teeters on the brink of collapse, with thousands of jobs at risk.
London-based Xyra Group has offered to pay off half of Poundland's outstanding debts - a key sticking point in takeover talks so far - immediately. The rest would be deferred.
With Poundland close to collapse, US-based owners Gordon Brothers have already rejected a rival bid from an Irish property group which would have saved its 12,000 staff.
Gordon Brothers said the business has faced years of instability and "remains challenged and vulnerable".
Sources familiar with the offer said Xyra is offering to immediately pay off £12.5m of an outstanding £30m loan on Poundland's books.
The offer came as Business Secretary Jonathan Reynolds held crunch talks with Gordon Brothers about the future of the business, urging the investment firm to protect staff however possible.
Gordon Brothers, which bought Poundland for £1 last June, committed at the meeting to prioritise offers which protect its shops and workers.
The company said: "We are pursuing all avenues through the sale process to find a solution which protects as many jobs as possible and preserves value. Work continues at pace, engaging in active discussions on offers with interested parties."
Xyra is offering to pay off a higher proportion of Poundland's outstanding debts than Martin Property Group, which previously submitted a bid that Gordon Brothers rejected.
But doubts remain about the credibility of Xyra's offer, as there is little evidence they meet Gordon Brothers' tests, including whether they have the money and whether they would be good long-term owners of Poundland.