Poundland could be at risk of collapse in the coming days, with around 600 stores across the UK potentially affected. The retailer's owners are understood to be considering offers for parts of the business.
Sale process and preferred bidder
The business was sold last year to Gordon Brothers for £1. However, it is understood the group could now enter insolvency in the coming days. The private equity company launched a sale process for Poundland last month after turnaround efforts, which included shutting a number of stores.
Management named Irish real estate firm Martin Property Group as the preferred bidder earlier this month. However, it is understood a bid from Martin is not fully funded and would involve deferred payments.
Other interested parties
Gordon Brothers is considering a number of other bids, which largely come from other retail rivals. This includes Wilko and The Range owner CDS Superstores, Poundstretcher owner Fortress and TG Jones owner Modella.
These companies are interested in buying parts of Poundland, which would ultimately see the business entering insolvency.
Statement from Gordon Brothers
A spokesman for Gordon Brothers said: "While Martin Property Group had been identified as the preferred bidder by Poundland’s management team, attention must now turn to other active bids.
"As well as interest from buyers for the whole business, the sale process has also surfaced a number of formal and indicative offers for significant viable parts of the business from established retail operators. These options will now be objectively evaluated, with a view to minimising uncertainty for Poundland’s people and all relevant stakeholders."
Poundland currently runs around 600 stores across the UK, employing around 12,000 workers. It is not understood how many of these could be impacted by changes.
