High street retailer Poundland could enter administration within days – but there are hopes thousands of jobs could be saved as its management team works towards an MBO.
Ireland-based Martin Property Group, which this week bought car parks giant NCP out of administration, is backing a potential management buyout.
Poundland was bought for just £1 last summer from Pepco Group by investment firm Gordon Brothers but the latter is now seeking a buyer for the discount retailer.
Poundland employs nearly 12,000 people and operates almost 600 stores, predominantly in the UK but also in Ireland. Its managing director Barry Williams is leading the bid for a solvent takeover.
Sky News first reported the story – since confirmed by Poundland – quoting an email sent by Williams to staff just over a week ago to say that he had “expressed a preference for one of the bidders who we’ve met and in whom we believe would be the best party to work with”.
He added: “That does not mean that we won’t work with anyone else – quite the contrary.
“Our – in fact MY – sole intention here is to get the best result for our business, colleagues and all our stakeholders.”
Sky News said that Andy Bond, who ran Poundland under Pepco, has agreed to return to the business, probably as its chairman, should the deal go ahead. Pepco is listed in Warsaw and remains a minority shareholder in the company.
Gordon Brothers is also reportedly demanding full repayment of a £30 million shareholder loan with any buyer of the business.