Irish property investor Martin Property Group is reportedly the preferred backer of a management-led takeover of Poundland, in a deal that could safeguard almost 12,000 jobs.
The Derry-based business is in talks with the chain’s management team, led by managing director Barry Williams, over a rescue deal that would keep the retailer out of administration.
Martin Property Group, which completed its acquisition of car park operator NCP last week, is understood to be proposing a solvent takeover that would preserve Poundland’s existing store estate and workforce.
Former Poundland boss and Asda chief Andy Bond is also expected to return to the retailer, potentially as chairman, should the deal go ahead.
The proposed transaction could see Martin Property Group pay as little as £1 for Poundland’s equity, while agreeing to repay outstanding loans and inject millions of pounds into the business to support its turnaround.
Current owner Gordon Brothers is also reportedly seeking full repayment of a £30m shareholder loan as part of any sale.
Martin Property Group, which owns assets including Preston’s Fishergate shopping centre and The Bedford hotel in Belfast, is understood to have become management’s preferred bidder in recent weeks.
The talks come as Gordon Brothers looks to conclude the sale of Poundland, little more than a year after acquiring the retailer from Pepco Group for £1.
Other interested parties include Poundstretcher owner Fortress Investment Group, TGJones owner Modella Capital and Hilco Capital.
However, concerns have reportedly grown that Martin Property Group may be the only bidder willing to acquire the business without an insolvency process, with a pre-pack administration seen as a possible outcome under alternative proposals.
Gordon Brothers is understood to be hoping to select a preferred bidder as early as this week, with a deal targeted before the end of October.
Poundland currently operates close to 600 stores and employs almost 12,000 people, following a major restructuring programme that saw scores of shops close last year.
It has since sought to rebuild its value proposition by simplifying its ranges and bringing more products back to its signature £1 price point.
Recent trading has shown signs of improvement, with Poundland reporting 3.3 per cent like-for-like sales growth in its latest quarter.
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