Cliff Notes
- A pack of suitors, including Endless and Hilco Capital, are expected to submit takeover offers for Poundland, which is struggling financially.
- Poundland’s owner, Pepco Group, is pursuing a sale amid rising losses and operational challenges, with Teneo advising on the auction process.
- The retailer experienced a 7.3% decline in like-for-like sales during the Christmas trading period, exacerbated by increased operating costs and recent tax hikes.
Struggling discounter Poundland gets bids from Hilco and Endless
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A pack of suitors will table takeover offers on Friday for Poundland, the struggling discount retail giant, as its owner pursues a speedy exit from the British high street.
Sky News has learnt that Endless, the turnaround investor, and Hilco Capital, the new owner of Lakeland, are among the bidders expected to lodge indicative proposals for the business ahead of a deadline set by Poundland’s owner.
The duo join Alteri Investors, which owns Bensons for Beds, in the auction of Poundland.
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Modella Capital, which has just agreed a deal to buy WH Smith’s high street division and this week announced rescue restructurings at Hobbycraft and The Original Factory Shop, may also be among those vying to buy the discounter.
Poundland has been put up for sale by Pepco Group, its Warsaw-listed owner, amid mounting losses and a struggle to turn the company around.
Pepco confirmed in March that it planned to explore a sale of the business, with Teneo hired to advise on an auction.
Last year, Poundland, which employs about 18,000 people, recorded roughly €2bn of sales.
Earlier this year, Pepco, which also trades as Pepco and Dealz in Europe, said Poundland had seen a like-for-like sales slump of 7.3% during the Christmas trading period.
In an accompanying trading statement, Pepco said that Poundland had suffered “a more difficult sales environment and consumer backdrop in the UK, alongside margin pressure and an increasingly higher operating cost environment”.
Recent tax hikes announced by Rachel Reeves, the Chancellor, in last autumn’s Budget have also increased the financial pressure on high street retailers.
Hilco and Endless both declined to comment.