Discount retailer Poundworld has procured a £50m loan from its banks, including Santander, to aid its expansion plans. The settlement has come just months after private equity firm TPG acquired a majority share in the chain.
The value chain has obtained a five year loan from Santander Corporate Bank which will enable the retail group to open 60 new stores a year in addition to its 300 stores across the UK.
The Yorkshire-based business also owns around 50 Bargain Buys shops and has strong competition with other bargain retailers including Poundland. Over the last decade, the company has flourished due to acquiring greater volumes of working and middle class shoppers as a result of the recession.
In addition, the retailer is also investing in a new IT system and a 500,000sq ft distribution centre close to its Wakefield head offices to keep up with growing demand and its store expansion.
"Santander’s help two years ago put the business on a firm footing and their support helped us to improve terms with our suppliers, landlords and credit insurers," said Poundworld's Co-Founder and CEO Chris Edwards.
"The business was in a great position to attract the interest of TPG, resulting in its investment earlier this year and, combined with the new facilities from Santander, Poundworld is in a strong position to push forward with its next phase of growth.”
The Edwards family sold a majority stake of their business to TPG earlier this year. The firm said that it would invest capital to fund store roll-out and improvement of the company’s new warehouse.