Gordon Brothers is seeking to sell UK high street store chain Poundland “within weeks”, according to Sky News, as it looks to complete a deal before the Christmas trading period.
The report said Alvarez & Marsal (A&M), appointed by Gordon Brothers last month to advise on the process, is aiming to secure a sale by the end of October.
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One person briefed on the matter told Sky News that first-round bids are expected early next month.
The sale process comes just over a year after Gordon Brothers acquired Poundland.
Gordon Brothers took over Poundland from Poland’s Pepco Group for £1 ($1.36), a deal that led to the closure of as many as 200 stores through a court-sanctioned restructuring plan.
That deal handed Poundland’s 800 stores to Gordon Brothers.
The retailer, which employed more than 14,000 people before the restructuring, now trades from roughly 600 shops.
Sky News reported that A&M has begun contacting potential buyers.
The report added Gordon Brothers has also received several “unsolicited approaches” for the business.
Modella Capital, the retail investor that owns TGJones and Hobbycraft, is said to be among the possible bidders.
The report added that interest is expected from both strategic buyers and financial investors.
One source said Gordon Brothers had supported Poundland and its management team in successfully stabilising and improving the business.
The same source said the company has become profitable on an EBITDA [earnings before interest, taxes, depreciation and amortisation] basis this year. Gordon Brothers and A&M declined to comment to Sky News.
