The sale of high street discounter Poundland is edging closer after a raft of investors and private equity giants tabled offers last week, ahead of Friday’s bid deadline.
The struggling chain was initially put up for sale in March, after seeing sales plummet for four consecutive quarters, following a disastrous transition to sourcing clothing and non-food ranges through parent company Pepco.
“It has become clear over the last 12 months that this integration has not delivered for customers or shareholders,” the group admitted, after like-for-like sales slumped by 7.3% over Christmas.
Potential owners with their eye on taking on the Poundland turnaround include high street investor Hilco Capital, which recently bought houseware retailer Lakeland, according to Sky News.
Other interested parties include private equity firm and turnaround investor Endless, Bensons for Beds owner Alteri Investors and private equity firm Modella Capital, which recently bought WH Smith’s high street stores for £76m.
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All bidders will have lodged their indicative proposals for the business by the end of the day last Friday (25 April).
Last week also saw Poundland cut a dozen director roles as part of a leadership restructure. The shake-up included key names such as head of digital and loyalty Emma Collins, digital director Tom Hill and head of retail excellence Pete Wyatt.
The reshuffle forms part of the turnaround efforts of the retailer’s MD Barry Williams, who returned to Poundland in January to “play a pivotal role in getting [it] back on track”.
Williams previously served as Poundland MD from 2017 until 2023, when he took the role of MD of Pepco, its sister retailer in Europe.
Advisory firm Teneo is handling the sale process.
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