Discount retailer B&M has joined the tussle to pick off select Poundland stores as its Boston-based owner Gordon Brothers eyes a rushed sale of the company.
London-listed B&M European Value Retail is interested in acquiring a small number of Poundland stores, should the retailer be broken up if a buyer for the whole company is not found, sources told City AM.
B&M will face competition from budget supermarket Lidl for Poundland’s best-placed stores. Last week, City AM revealed the German grocer had bid for a single Poundland shop in the hopes of ‘cherry picking’ a handful more in the event of a break-up.
A number of other retailers are understood to be interested in acquiring some of Poundland’s stores. These include The Range and Poundstretcher, which is owned by Fortress Investment Group.
Lidl’s rival Aldi and B&M competitor Home Bargains were reported to have been sniffing around the sale but City AM understands neither have submitted a formal bid.
Beyond the retailers hoping to snap up extra sites from Poundland’s sale, a number of investment groups have submitted bids for the business.
Poundland’s management has expressed preference for the offer tabled by Martin Property Group, the Irish firm which recently bought National Car Parks (NCP).
Restructuring experts weigh up bids
B&M’s interest in Poundland, first reported by Sky News, comes after Gordon Brothers parachuted in three restructuring experts to join Poundland managing director Barry Williams and finance chief Shaun Wills.
Andrew Kirkpatrick, Stephen Welch and Dominic Young have begun reviewing the bids tabled for the retailer, in the hopes of securing a sale before the crucial pre-Christmas trading period kicks off in earnest.
The three restructuring experts were added to Poundland’s board to ease concerns expressed by Martin Property Group’s rival bidders that they would not stand a chance against a bidder who had been publicly endorsed by the company’s management.
Gordon Brothers kicked off its sale of Poundland last month, little more than a year after buying the company for a nominal £1 fee from retail group PepCo.
A spokesperson for Gordon Brothers said last week: “After commencing a thorough sale process for the entirety of the company, prompted by interest from several parties, active discussions continue with a number of potential acquirers.
“The offers include those from buyers for the whole business and also indicative offers for significant viable parts of the business from established retail operators.”