Poundland owner Pepco group has called in advisers to address the value retailer’s sales slump.
The parent company has taken on AlixPartners to deal with the ongoing sales decline, with City sources raising the possibility that it could be looking into the sale of Poundland or is mulling a formal restructuring process that could result in job cuts and store closures.
AlixPartners is understood to have been formally engaged the prior week, Sky News reported on Saturday, with options varying from a company voluntary arrangement or restructuring plan on a “highly preliminary basis”.
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Sources close to the parent company said no decisions had been made and that AlixPartners immediate focus would be on improving Poundland’s cash performance and reviving its customer proposition.
It comes after the value chain saw like-for like sales plummet 7.3% in the quarter to 31 December, driven by continued weak clothing and general merchandise performance as well as challenging market conditions.
The group said it expected its toughest comparative quarter for Poundland was now behind it, and that it anticipated the negative sales performance to moderate as it moved through the year.
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