Poundland’s owners have appointed three independent directors to the discount chain’s board as rescue talks intensify, with administration still a possibility.
Majority owner Gordon Brothers and minority shareholder Pepco Group have brought in Andrew Kirkpatrick, Stephen Welch and Dominic Young to help oversee the retailer’s future, as a decision on its sale draws closer.
Kirkpatrick previously advised Steinhoff International, a former owner of Poundland, while Welch is a restructuring specialist and chairman of fintech firm FNZ. Young previously served as a director of The Spectator’s former parent company.
Gordon Brothers is currently reported to be considering competing offers for the whole business and parts of its store estate, with a decision potentially coming as early as next week, according to Sky News.
The three directors will form a majority on Poundland’s board, amid speculation that their appointment could pave the way for an administration process.
However, sources close to the sale have offered conflicting accounts of the move, with some suggesting the appointments followed management’s preference for a rescue deal backed by Irish property investor Martin Property Group.
The group is understood to have proposed a solvent takeover that would preserve Poundland’s remaining stores and workforce, while injecting fresh funding into the business.
Meanwhile, Poundstretcher owner Fortress Investment Group has reportedly revised its offer to acquire between 200 and 250 Poundland stores, alongside its brand and stock.
Modella Capital and The Range owner CDS Superstores have also been linked to the sale process.
A spokesperson for Gordon Brothers said discussions remained ongoing with several prospective buyers, including those interested in acquiring the entire business and others targeting viable parts of the chain.
“The board will now objectively evaluate these options,” the company said, adding that it would consider the interests of employees, suppliers and local communities.
The developments come amid growing uncertainty over the future of Poundland, which employs around 12,000 people across close to 600 stores in the UK and Ireland.
Gordon Brothers acquired the retailer from Pepco Group for £1 last year, but has since launched a fresh sale process despite recent signs of improving trading.
Shopworkers’ union Usdaw has warned that an administration process could put thousands of jobs at risk, as the retailer approaches the crucial Christmas trading period.
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