The sale of Poundland is said to have been thrown into doubt over unpaid business rates, with a string of local councils pursuing the retailer.
The variety discounter has been hit with a series of court claims over the unpaid taxes, according to The Telegraph.
It is feared the outstanding bills, thought to run to millions of pounds, could derail talks to secure a buyer to turn around the struggling chain.
Poundland is said to be hoping to write off the debt as part of a court-sanctioned turnaround plan, subject to approval by a judge. The plans also include freezing future business rates payments for up to nine months under new ownership.
It follows a report from Sky News yesterday that Poundland’s owner Pepco Group is expected to contribute an eight-figure sum to finance the discount chain’s ongoing operations as part of a deal with frontrunner Gordon Brothers.
Sources are said to have stressed other outcomes remain possible, with a deal yet to be formalised.
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.
More than 100 Poundland stores are expected to close as part of a deal with new owners.
Poundland currently has 818 stores across the UK and Ireland and employs around 16,000 people.
Pepco Group declined to comment.
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