The owner of Poundland has appointed three restructuring experts to the discount chain’s board as it prepares to either sell or appoint administrators for the retailer.
Gordon Brothers has parachuted in Andrew Kirkpatrick, Stephen Welch and Dominic Young. Gordon Brothers said the three had “agreed to join the board of Poundland as independent directors bringing additional M&A transaction and industry experience”.
Kirkpatrick previously advised former Poundland owner Steinhoff International, Welch is a former director at The Telegraph, and Young is a former director of the Spectator magazine’s parent company.
“After commencing a thorough sale process for the entirety of the company, prompted by interest from several parties, active discussions continue with a number of potential acquirers,” said Gordon Brothers.
“The offers include those from buyers for the whole business and also indicative offers for significant viable parts of the business from established retail operators. The board will now objectively evaluate these options, considering all relevant stakeholders, with a view to minimising uncertainty for the people, suppliers and local communities with an interest in the business and its future.”
Sky News, which revealed the appointments minutes before the announcement, reported two conflicting interpretations of the move from sources: groundwork for Gordon Brothers to force Poundland into administration, or a result of its existing board members identifying Martin Property Group as their preferred backer in a management buyout (MBO).
A Poundland spokesman told The Grocer the MBO bid for the chain as a solvent business was still “ready to go”, after union Usdaw warned earlier in the week that Gordon Brothers was rejecting the offer.
Read more: Poundland management buyout still on the table as it hires for Christmas
Other bidders are targeting stores, fuelling fears of insolvency.
Poundstretcher owner Fortress is bidding for up to 250 stores, close to half of Poundland’s estate.
The Range owner CDS Superstores is also among those reported to be vying for stores.
Poundland employs about 12,000 people.
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