Gordon Brothers has kicked off a formal sale process for Poundland, hiring advisory firm Alvarez & Marsal to sound out potential buyers.
Little more than a year after snapping up the discount chain for £1, the private equity firm could sell Poundland within weeks.
It is understood A&M launched the process on Wednesday, with talks expected to begin with a number of interested parties as Gordon Brothers looks to secure a swift deal.
The move follows reports last week that Modella Capital, the owner of TGJones, had emerged as a potential bidder for Poundland.
Sources close to the process said there were hopes a sale could happen ahead of the key festive trading period.
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Poundland has been undergoing a turnaround under Gordon Brothers as it works to stem losses and counter weaker consumer demand.
The restructuring has included shutting more than 100 stores across the UK and simplifying the retailer’s offer.
As part of the overhaul, Poundland has returned to a simpler grocery pricing structure across its UK estate, with more products sold at £1, £2 and £3 price points.
The discounter has also rolled out clearer pricing across its general merchandise and clothing ranges as it seeks to rebuild its value credentials with shoppers.
A Poundland spokesman said: “We’re not going to be distracted from the successful recovery we’re putting in place through good old-fashioned back-to-basics retailing. Lower prices. New ranges. Better service.”
Gordon Brothers has also expanded its UK retail interests this year, buying LK Bennett and Radley from administration.
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