Pepco Group’s efforts to dispose of its struggling Poundland chain look to be finally reaching a conclusion, with a deal with investment group Gordon Brothers set to be finalised as soon as this week.
According to Sky News, the transaction will see Pepco contribute a “substantial” eight-figure sum to finance Poundland’s ongoing operations after a further deterioration in the discounter’s trading.
However, sources told the news channel that a final deal had yet to be formally agreed, and other outcomes were still possible.
Former Laura Ashley-owner Gordon Brothers has been a frontrunner to buy Poundland, with Hilco, the former owner of HMV and Homebase, also involved in the final stages of the auction.
If a transaction between Pepco and Gordon Brothers is struck, hundreds of Poundland’s 800 stores are likely to be closed as part of a turnaround plan drawn up by the chain’s senior management. The retailer is also expected to seek significant rent reductions from store landlords.
NAM Implications:
- If the price is not right, concessions can be made to tip the balance…
- We know what has to be done with the new Poundland.
- Just depends on who makes the moves.
- Before or after purchase…see here)
