Poundland owner Pepco has formally appointed advisors at Teneo to handle the sale of the discount chain.
The group revealed it was “actively exploring” a sale of the business last week as it claimed the UK retail market remains “increasingly challenging” and additional tax changes from next month will impact the retailer’s cost base.
Pepco said Poundland had continued its negative like-for-like sales performance for the first two months of the year, with an “underperformance of all categories”.
It is thought that the retailer’s 825 store portfolio could be at risk as the group looks to offload the chain.
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A Pepco spokesman told The Telegraph: “As stated at our capital markets day on March 6, we are actively exploring separation options, including a potential sale, for the Poundland business. We have started to work with advisers to support us with this process.”
The group had hired advisors at Alix Partners at the start of the year to conduct a “comprehensive assessment” of the brand ahead of its Capital Markets Day.
Pepco’s chief executive Stephen Borchert said last week that a number of potential suitors had already shown an interest in the business.
Borchert declined to comment on the type of interest, what stage talks had reached, or what Poundland was worth. However, he said he was confident its future would be decided by September this year.
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