Discount retailer Poundland could be broken up after its owners began weighing up offers for sections of the business.
It is understood that owner Gordon Brothers – which only acquired the chain last year for £1 – is currently moving away from the primary solvent takeover bid, raising the prospect of the group entering insolvency within the next few days.
Sale process and preferred bidder
The private equity firm launched a sale process for Poundland last month following turnaround efforts that included closing a significant number of stores.
Irish real estate firm Martin Property Group was named as the preferred bidder by management earlier this month. However, it is understood that Martin's bid is not fully funded and would involve deferred payments.
Rival bids for parts of the business
Gordon Brothers is consequently evaluating several rival bids, largely from competing retailers, which would entail purchasing portions of the Poundland business and would ultimately result in the company entering insolvency.
Wilko and The Range owner CDS Superstores, Poundstretcher owner Fortress, and TG Jones owner Modella are amongst those believed to be interested in acquiring parts of the struggling retailer.
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."
Walsall-based Poundland currently operates approximately 600 stores throughout the UK, with a workforce of around 12,000 employees.
