British supermarket chain Iceland is reportedly set to purchase 19 Poundworld stores, which were shut during its administration process.
Of the 19 stores, Iceland is said to convert four stores into food warehouses, while the remaining will be transformed into regular Iceland stores.
The development follows after the Irish retail family, the Hendersons, decided to withdraw from its agreement to acquire Poundworld, according to Retail Gazzette.
Poundworld, a 335-store retailer owned by private equity group TPG Capital, went into administration in June after failing to find a suitable buyer.
The retailer suffered from ‘high product cost inflation, decreasing footfall, weaker consumer confidence, and an increasingly competitive discount retail market’.
The store closures affected around 5,100 employees and the company appointed Deloitte as administrators.
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Deloitte spokesperson was quoted by Retail Gazzette as saying: “We had an agreement in principle, but the sale didn’t go through.”
“Following the closure of all stores, the administrators are actively seeking offers for the sale of the Poundworld brand and related intellectual property.”
Iceland currently operates more than 900 stores across the UK, offering fresh, chilled and frozen food, as well as groceries.
Earlier this month, the supermarket chain entered a strategic alliance with British retailer The Range to introduce Iceland’s food offerings in The Range’s home, garden and leisure stores.