New WH Smith proprietor Modella seeks so as to add Poundland to retail empire

The little-known investor slicing a swathe by way of the British excessive road has made it onto a shortlist of bidders vying to purchase Poundland, the struggling discounter.

Sky Information has learnt that Modella is amongst a handful of bidders notified in latest days that they’ve made it by way of to a second stage of the public sale of Poundland.

Its progress within the sale course of raises the prospect of Modella taking possession of its fourth main British retailer in lower than 9 months.

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Modella has additionally agreed to purchase WH Smith’s historic excessive road chain and rebrand it beneath the identify TG Jones.

That deal has but to shut, and Sky Information reported on the weekend that Modella will successfully be prohibited from launching a CVA there for not less than a 12 months beneath the phrases of its cope with WH Smith.

Among the many different suitors for Poundland are Limitless, the turnaround investor, and Hilco Capital, the brand new proprietor of Lakeland.

Poundland has been put up on the market by Pepco Group, its Warsaw-listed proprietor, amid mounting losses and a wrestle to show the corporate round.

Pepco confirmed in March that it deliberate to discover a sale of the enterprise, with Teneo employed to advise on an public sale.

Final 12 months, Poundland, which employs about 18,000 folks, recorded roughly €2bn of gross sales.

Earlier this 12 months, Pepco, which additionally trades as Pepco and Dealz in Europe, mentioned Poundland had seen a like-for-like gross sales droop of seven.3% throughout the Christmas buying and selling interval.

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In an accompanying buying and selling assertion, Pepco mentioned that Poundland had suffered “a harder gross sales atmosphere and client backdrop within the UK, alongside margin strain and an more and more greater working value atmosphere”.

Latest tax hikes introduced by Rachel Reeves, the chancellor, in final autumn’s Price range have additionally elevated the monetary strain on excessive road retailers.

Modella declined to touch upon its curiosity in Poundland.