The future of Lancashire's Poundland stores including Preston and Chorley remains unclear today
A bid to save Poundland which has stores across Lancashire is underway.
The future of Poundland, which has multiple stores across Lancashire including Preston and Chorley, remains up in the air as it races to find a buyer.
Searches for ‘Poundland store closures’ have already soared 5,000% according to Google Trends data, as shoppers investigate if the discount retailer will remain on their local high street. There are approximately 600 sites in the UK and Ireland.
Last week, the owner of Poundland - which founded in Burton upon Trent, Staffordshire, in 1990 - drafted in three new directors, including restructuring experts, to help oversee the discount retailer as sale talks continue. It is being prepared for either a solvent sale or a break-up which would be likely to involve an insolvency process.
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In the last few days, B&M European Value Retail has lodged its interest in buying a small number of Poundland shops as part of any break-up of the troubled chain, Sky News reported. Other retailers including The Range, Lidl, the supermarket chain, and Poundstretcher, are interested in varying numbers of the shops. But no new deal has yet been confirmed.
It comes after majority owner Gordon Brothers, which snapped up Poundland for £1 only last year, launched a sale process for the high street retailer in recent weeks
Gordon Brothers has now appointed three directors to its board to bring “additional M&A (merger and acquisition) transaction and industry experience” to the firm. The group has appointed Andrew Kirkpatrick, Stephen Welch and Dominic Young as directors. Mr Kirkpatrick was previously an adviser to Steinhoff International, the South Africa-based former Poundland owner.
Mr Welch is a restructuring expert who was previously a director at the Telegraph and is currently chairman of fintech firm FNZ. It has also appointed Dominic Young, a former director of the Spectator magazine’s parent company.
The appointments come as talks intensify with suitors for whole or parts of the Poundland business. Three businesses remain in talks to buy the whole operation, including Irish real estate firm Martin Property Group. Poundland boss Barry Williams told staff earlier this month that Martin would be the preferred partner for any management buyout.
CDS Superstores, the owner of The Range, has reportedly emerged as a contender to buy parts of the business.
Billionaire retail tycoon Chris Dawson is considering a deal after snapping up Wilko and Homebase operations in the past two years.
A spokesman for Gordon Brothers said: “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. 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.”