Gordon Brothers, owners of UK discount retailer Poundland, has agreed to release £19 million from the company’s accounts as part of a final bid to save it from administration, the BBC has reported.

The news comes after Gordon Brothers faced down a committee of MPs on Wednesday following accusations that the US investment group hoped to profit from Poundland’s piecemeal breakup.

Just prior to this meeting, Sky News reported that Gordon Brothers was set to release £10 million from Poundland’s balance sheet to pay suppliers. According to the BBC, the US firm then agreed to release a further £9 million, granting the company a further ten days to find a buyer.

Around £50 million had been frozen by Gordon Brothers, meaning that Poundland bosses were unable to restock its 600 stores nationwide.

There are currently three potential offers to buy the company, which made £18.1 million in profit in the year to September, but all three have been rejected by Gordon Brothers.

One of these deals, submitted by Martin Property Group with the backing of Poundland’s management, would retain all of Poundland’s existing stores and suppliers, preventing the feared mass layoffs and redundancy that a piecemeal breakup could cause.

Prime minister Andy Burnham and other prominent politicians have called for answers as to why the deal was rejected, with the BBC reporting that Gordon Brothers stands to profit from selling the company and its stock in parts.

Following the meeting between the House of Commons Business and Trade Select Committee and Gordon Brothers, committee chair Liam Byrne told the BBC that he was “deeply concerned”, describing the firm’s behaviour as “much like a wolf on Wall Street, on the British High Street”.

In the meeting, the investment group refused to prioritise protecting jobs and stores over their own financial returns, he said, adding: “It's clear that they've taken millions out of Poundland at a time when they themselves said the business was on a knife edge.”

The Labour MP urged Gordon Brothers to “do what is right”.

Following the private meeting with MPs, Poundland chief executive Barry Williams told the state-owned broadcaster that the chain’s board would hold an urgent meeting on Wednesday night.

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