Poundland: Gordon Brothers in pole position to snap up discount chain
Poundland could be snapped up by Gordon Brothers, who is reportedly in “pole position” to acquire the business.
Poundland could be snapped up by Gordon Brothers, who is reportedly in “pole position” to acquire the business.
The shortlist of bidders for the discounter also includes turnaround investors Hilco Capital, Endless and Modella Capital — the private equity firm behind The Original Factory Shop and WHSmith’s high street business.
The Times reported that bids for the discount giant expected to be made tomorrow (20 May) with Gordon Brothers is in pole position.
Despite this, other sources have told The Times that other bidders could materialise and that Gordon Brothers did not have preferential status.
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It comes as up to 200 Poundland stores could be shuttered and thousands of jobs put at risk as the discount retailer’s sale process enters a critical phase.
The chain has been up for sale since March, with the process being led by advisers at Teneo. A deal is expected to be finalised by September, in time for Pepco’s full-year results.
A spokesperson for Pepco Group 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: “With Barry Williams’ reappointment as managing director, 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.”
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