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UK low cost retailer Poundland has been bought for lower than £1 to US non-public fairness group Gordon Brothers, as its Warsaw-listed proprietor strikes away from promoting low-margin client items.
Pepco Group stated it had bought the struggling retailer for a nominal consideration — or €1 (85p), in keeping with an individual conversant in the deal — and a minimum of £30mn in debt, plus a possible additional £30mn mortgage to be prolonged by Pepco on completion of Poundland’s proposed restructuring plan.
It stated Poundland could be led by Barry Williams, its present managing director.
Gordon Brothers stated it might present as much as £80mn “to assist the administration group’s proposed restructuring and turnaround plan”.
Pepco stated its sale of the 825-store chain would enable it to deal with its higher-margin clothes and normal merchandise enterprise in Europe.
It gave no particulars of Poundland’s restructuring plan, which is topic to approval by England’s Excessive Court docket.
