Poundland is hoping to secure more time to finalise a rescue deal as the retailer approaches a deadline to appoint administrators. The struggling company filed a notice of intention to appoint administrators at the end of October, which gave it 10 days to secure a potential rescue deal. That period is set to expire at midnight.
According to sources cited by the BBC, a deal has not yet been reached, but the company expects to receive an extension that would allow more time. Poundland's owners have reportedly enabled the release of around £10 million worth of funding to be used for paying staff, taxes, and suppliers of stock.
Potential Buyers and Interest
Advisers have been in talks with parties interested in buying the brand or parts of the business, such as swathes of shops. Talks have been held with potential bidders including Tesco over proposals to buy up to 150 shops, as well as other chains such as Iceland and Lidl.
Investment firm Xyra Holdings has emerged as a potential buyer for the entirety of the business, while Irish real estate firm Martin Property Group is believed to remain interested in a deal. Gordon Brothers previously rejected a takeover offer from Martin Property Group but named them as their preferred bidder last month.
Impact of Administration
Any extension to Wednesday's deadline could keep the prospect of a deal that would satisfy the company's creditors on the table. If not, administrators are expected to be appointed, with corporate advisory firm AlixPartners understood to be lined up. This would pose a threat to the future of its roughly 600 shops and 11,000 employees.
