Poundland bosses disappointed as fully-funded rescue bid is rejected

The rejection of a fully-funded bid that would have kept Poundland intact has been slammed by management for causing an ‘unexpected, unwanted and wholly avoidable situation’.

Bosses at Poundland have been left disappointed at the news that their preferred offer from Martin Property Group has been turned down - putting the future of hundreds of stores and thousands of jobs at risk.

Talks have been ongoing to find a buyer for the discount retail chain which has around 600 stores in the UK and Ireland including many across the West Midlands and Shropshire.

Irish retail estate business Martin Property Group had been the management team’s preferred partner to take Poundland forward but a number of other firms have also expressed interest in the Walsall-headquartered business which was founded in the Black Country.

TG Jones owner Modella Capital, Lakeland owner Hilco Capital and Poundstretcher owner Fortress Investment Group are among names reportedly touting for Poundland - with Fortress said to have expressed an interest in a portion of stores - around 200 to 250.

Gordon Brothers, which owns Poundland, previously said it was looking at all submitted bids but today it was confirmed that Martin Property Group’s offer is out of the running.

A spokesperson for Poundland said: “The rejection of management’s preferred offer from the Martin Property Group is disappointing as it was a fully funded, ready-to-go bid that would have kept the business intact.

“The sale process, instigated by Poundland’s owner Gordon Brothers and their advisers, continues to be a matter for them.

“Nevertheless, it is causing an unexpected, unwanted and wholly avoidable situation for Poundland.

"Any break-up stands in stark contrast to the remarkable recovery taking shape at Poundland.

“Even though this situation is not of our own making, we will continue to work hard to get the best outcome for our colleagues and other partners.”

Poundland had previously told how its restructuring programme that has been going on for the past year had put the business in “very good shape” - with the company achieving positive like-for-like sales growth in the last full quarter to September 27.

Gordon Brothers and its advisors Alvarez & Marsal have been contacted for further comment.