Poundland takeover talks continue despite administration fears

Poundland is in talks over a takeover deal with bidders including Martin Property Group and TG Jones owner Modella.

It is understood Poundstretcher owner Fortress and Lakeland owner Hilco Capital have also shown interest.

However, retail trade union Usdaw says it is concerned the retailer could be moving closer to administration as owner Gordon Brothers continues with efforts to secure a sale of the business.

However, it is understood advisers are still hoping to strike a solvent deal, which would avoid administration.

Bally Auluk, Usdaw national officer, said the union has been told offers linked to a potential management buyout “are being turned down”.

He said: “Sources within the company are telling me that a decision about the future of Poundland could be made as early as tomorrow and there are deep concerns the business could go into administration, which would be a disaster for our members.”

It is understood Irish real estate business Martin Property Group and Modella Capital, the owner of TG Jones and Hobbycraft, are among bidders still involved in the Poundland auction process.

Poundland management, including managing director Barry Williams, have aligned themselves with the Martin Property Group bid, suggesting it would be the preferred partner for any management buyout.

The potential sale comes after private equity firm Gordon Brothers bought the business last June for £1.

Gordon Brothers, which has overseen a major restructuring of the business, hired corporate advisory firm Alvarez & Marsal to find a buyer for the business.

Poundland shut more than 100 stores across the UK in a bid to arrest significant losses.

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.