UK retailer Poundland buys more time as rescue efforts continue

LONDON, Nov 12 (Reuters) - British discount retailer Poundland on Thursday filed another Notice of Intention to appoint administrators, giving the business and its owners, US investment firm Gordon Brothers, more time to find a rescue deal.

The extension gives Poundland, which trades from more than 600 stores in the UK and Ireland and employs about 12,000, another 10 working days of legal protection from creditor claims.

British Prime Minister Andy Burnham said last month that he wanted to see a rescue deal which would protect jobs at the retailer.

Poundland's board said in statement that a sale process was ongoing and there was funding agreed to enable the business to continue trading for now.

“The Board of Poundland has today resolved to make an application for a second NOI with a view to identifying the best available prospects for shareholders, creditors and our people," it said.

The board added that its stores remain open as usual.

Representatives of Gordon Brothers appeared before parliament's Business and Trade Committee in private session on Wednesday.

After the session, the committee's chair, senior Labour lawmaker Liam Byrne, criticised Gordon Brothers, saying it had denied Poundland access to its own bank accounts.

Gordon Brothers, which purchased Poundland last year for a nominal £1 from Warsaw-listed Pepco Group, did not respond to a Reuters request for comment. Previously a spokesperson has said it is "pursuing all avenues through the sale process to find a solution which protects as many jobs as possible and preserves value".

(Reporting by James Davey, editing by Sam Tabahriti and Sarah Young)