Poundland has attracted a raft of potential buyers who are keeping a close eye on the discount retailer amid expectations Steinhoff will need to sell it.
According to The Telegraph, continuing financial turmoil at Poundland’s South African parent company has prompted private equity firms including Apax, Advent, Bain, Clayton Dubillier & Rice, CVC and KKR to consider a potential buyout.
It is also understood that Poundland chief executive Andy Bond has been seeking financial buyers in an effort to fund a management buyout of the business, allowing the discount chain to run itself.
Poundland reported a run of record sales over the Christmas period, and recently announced ambitious plans to roll out 150 Pep&Co concessions across its network, making it one of the largest fashion retailers in the UK.
Earlier this month US investment management firm Davidson Kemper announced it would grant Poundland a £180 million loan, removing its financial reliance on Steinhoff which it has been keen to distance itself from.
Steinhoff plunged into controversy late last year after it revealed its accounts stretching as far back as 2015 would have to be restated due to accounting irregularities.
In the wake of the scandal, in which its chief executive and chairman have stepped down, over 80 per cent of the retail giant’s share value was wiped – estimated to total around £9 billion.
Despite growing interest, a decision is reportedly still three to six months away, allowing for Steinhoff to negotiate refinancing deals with its lenders.
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