Hundreds of Poundland stores at risk under rescue deal terms
Poundland could close up to 200 loss-making stores as part of a rescue deal for the discount retailer.
Bids for the retailer – which has been up for sale since March – are expected this week, with The Sunday Times reporting that investment firm Gordon Brothers has emerged as the frontrunner.
Other potential suitors include Hilco Capital, Endless, and Modella Capital – the private equity firm which owns The Original Factory Shop and recently acquired WHSmith’s high street business.
Poundland – which operates 825 stores across the UK – has suffered as a result of rising costs and competition from other supermarkets.
A spokesperson for Pepco Group, which owns Poundland, said: “As announced at the capital markets day on March 6, Pepco Group is moving away from fast-moving consumer goods to create a simpler business focused on higher-margin clothing and general merchandise and is actively exploring separation options for Poundland, including a potential sale, from the group.”
They added: “Poundland is executing a turnaround programme to get the business back on track, focusing on its core heritage strengths and a simpler pricing proposition and customer offer.”