New Lakeland owner Hilco mulls bid for Poundland

New Lakeland owner Hilco Capital is among a number of parties circling Poundland.

The discount chain, which was put up for sale last month, is understood to have caught the eye of the private equity firm and turnaround investor Endless with both parties expected to submit indicative proposals for the business, Sky News reported.

The pair join Bensons for Beds owner Alteri Investors in the auction of Poundland.

It is thought that The Original Factory Shop owner Modella Capital could also be among the group of bidders.

Poundland owner Pepco confirmed in March it was exploring a sale of the discount chain as it continued to rack up losses following weak sales.

The group, which has hired Teneo to handle an auction, blamed the “increasingly challenging” UK retail market and added the additional tax changes coming into effect this month would further impact its cost base.

Poundland continued its negative like-for-like sales performance for the first two months of the year, with Pepco reporting an “underperformance of all categories”.

Last week, Poundland restructured its leadership team which saw a dozen senior directors in the discount chain’s digital, commercial, buying, retail, HR and supply chain teams leave the business.

Among those impacted by the job cuts include director of digital Tom Hill, head of digital loyalty and engagement Emma Collins, head of labour and productivity Steve Young, and head of retail excellence Pete Wyatt.

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