Advent International, the US private equity owner of British discount chain Poundland, has hired Close Brothers to assess its options for the retailer, which sells all items for £1. One option to be explored is a potential sale to another private equity group or buy-out company. It is believed Advent will sell the retailer in an auction. Pound shops have flourished in the recession, moving in to properties on the high street left empty by failed retailers, including Woolworths. Poundland has also seen rapid sales growth due to its cheap prices attracting cautious spenders. Advent bought Poundland for £50m in 2002, twelve years after it was founded inspired by single-price stores in the US. A market leader, Poundland has 254 shops, with plans to open a further 50 next year. It is thought the retailer could eventually have as many as 650 stores. The retailer is currently testing a small number of out-of-town stores that provide large spaces at cheaper rents than on the high street, after research indicated that about 50% of shopping takes place on the high street. Its revenues rose from £329m to £396m in the year to March 2009, and is expected to reach over £500m this year. Pre-tax profits more than doubled from £4.2m to £8.6m. Jim McCarthy, a former managing director of Sainsbury's conveneince stores, is now Poundland's chief executive.
