Poundland could enter insolvency within days over sale bids

Summarised from 3 outlets · Updated 27 Oct, 13:58 · Archive

Poundland could enter insolvency within days as owner Gordon Brothers considers breaking up the business, affecting 15 Essex stores.

Poundland could enter insolvency within days as its owner Gordon Brothers considers various bids for the retailer. The budget chain operates about 600 shops nationwide and employs around 12,000 people, with 15 stores across Essex in Southend, Chelmsford, Colchester, Clacton, Grays, Harlow, Basildon and Braintree. Its latest Essex branch opened at Lakeside Shopping Centre in West Thurrock on 29 August.

Gordon Brothers bought Poundland last year for £1 and launched a sale process last month following turnaround efforts that included closing a number of stores. Irish real estate firm Martin Property Group was named management's preferred bidder earlier this month, but its offer is understood not to be fully funded and would include deferred payments.

Gordon Brothers is now assessing other bids, mainly from retail rivals. A break-up could see Poundland enter insolvency, with different companies buying parts of the retailer. Among those interested are Wilko and The Range owner CDS Superstores, Poundstretcher owner Fortress and TG Jones owner Modella.

A spokesman for Gordon Brothers said: 'While Martin Property Group had been identified as the preferred bidder by Poundland's management team, attention must now turn to other active bids. As well as interest from buyers for the whole business, the sale process has also surfaced a number of formal and indicative offers for significant viable parts of the business from established retail operators.'

How it is being reported

• Essex Poundland stores could be at RISK if it enters insolvency within daysPoundland could enter insolvency within days as owner Gordon Brothers weighs rival bids, threatening 15 Essex stores.Brentwood Guardian · 27 Oct, 13:10
• Essex Poundland stores could be at RISK if it enters insolvency within daysPoundland could enter insolvency within days as owner Gordon Brothers weighs rival bids, threatening 15 Essex stores.Colchester Gazette · 27 Oct, 13:10
• Essex Poundland stores could be at RISK if it enters insolvency within daysPoundland could enter insolvency within days as owner Gordon Brothers weighs rival bids, threatening 15 Essex stores.Echo (Basildon) · 27 Oct, 13:10

In this story: Poundland · Gordon Brothers · Martin Property Group · CDS Superstores · Fortress · Modella · Essex

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