The owners of Poundland are getting ready to hand over tens of millions of pounds to secure the sale of the chain, it has been reported.
Pepco Group is expected to contribute an eight-figure sum to finance Poundland’s ongoing operations as part of a deal with Gordon Brothers, according to Sky News.
The transaction could be finalised this week and pave the way for the closure of over 100 Poundland stores, leading to substantial job losses.
However, sources are said to have stressed other outcomes remain possible, with a deal yet to be formalised.
Earlier reports suggested a number of private equity bidders for Poundland had narrowed to a two-horse race between former Laura Ashley owner Gordon Brothers and distressed lender and buyout specialist Hilco Capital.
Who are the private equity firms in the race to snap up Poundland?
Warsaw-listed Pepco Group put Poundland up for sale in March, after the variety discounter’s weak trading led to a £650m writedown on the group’s balance sheet.
Pepco Group’s first-half results last month revealed Poundland revenue fell 6.5% to £985m in the six months to 31 March, as poor trading continued from last year.
Poundland currently has 818 stores across the UK and Ireland.
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