Number Of Firms Preparing Offers For Poundland
Alteri, a private equity investor that owns Bensons for Beds, is reportedly among a pack of suitors circling struggling discount chain Poundland.
According to Sky News, Alteri, which recently missed out on a deal to buy the high street operation of WH Smith, is preparing to submit an offer for Poundland in the coming weeks. It is expected to be among a number of bidders for the 825-strong chain.
Last month, Pepco Group confirmed that it was evaluating all strategic options to separate off its UK business, including a sale. Its Chief Executive, Stephan Borchert, revealed at the time that it had already received interest from potential buyers.
He declined to comment on the type of interest, what stage talks had reached, or what Poundland was worth, but said he was confident its future would be decided by September this year.
Advisory firm Teneo has been appointed to oversee the process, with analysts suggesting that a deal could put scores of stores at risk of closure.
Despite efforts to return Poundland to its core £1 offering, the business suffered a slump in sales last year. Last month, Pepco highlighted that Poundland was operating in an increasingly challenging UK retail landscape that would intensify due to tax hikes, adding further pressure to the discounter’s cost base and impacting profitability.
Alteri, which is backed by the investment giant Apollo Global Management, has not commented on the Sky News report.
NamNews Implications:
Key facts:
* Poundland is up for sale.
* Any attempt to return Poundland to its core £1 offering has been diluted via inflation (£1 at launch is now £3+).
* Anyone buying Poundland has to:
- Close unprofitable shops
- Sell remaining sites to the ‘highest bidder’
- Possibly optimise any residual brand value via online
* And that’s it, nice while it lasted!
Poundland PoundShops
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