Poundland sale faces uncertainty

Business · First reported 27 Oct, 08:03 · Updated 13:24

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Poundland’s sale process has stalled, with reports saying insolvency is a growing risk and that rival retailers have made offers for parts of the business. The dispute centres on a £30 million loan and whether it would be repaid as part of a sale.

The directors recruited to oversee the emergency sale process are reportedly considering resignation, less than two weeks after being appointed.
Martin Property Group was identified by Poundland’s management as its preferred bidder, but the sale has stalled amid disagreement over repayment of a £30 million loan.
Gordon Brothers is assessing bids for parts of the retailer as well as interest in buying the whole business.
The reports say insolvency could put thousands of jobs at risk; Poundland has more than 12,000 employees and about 600 UK stores.
City A.M. reports that bidders for individual stores have committed to taking on the staff at locations they acquire under TUPE rules.

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Key facts

Loan: £30 million; the disagreement concerns repayment terms and timing.
Poundland scale: More than 12,000 employees and around 600 UK stores.
Potential buyers: Offers have been made for substantial parts of the business; the reports name several retail operators.