Thu, 07 Jun 2018 | BUSINESS SALE
Poundworld's private equity owner TPG has revealed that the firm faces collapse unless a new buyer is found after a potential purchaser backed out of the race to secure the discount chain.
According to reports, Deloitte, which has been responsible for handling the sale of the chain, has also been putting together plans for an administration in case TPG fails to find the right buyer in the near future.
Deloitte has confirmed that a sale via a pre-pack administration could be an option for the company, but this approach would put at risk the jobs of all 5,500 staff members currently working for Poundworld and is currently the least favoured option when it comes to the future of the chain.
Despite concerns over the potential failure of the sales process, TPG initially attempted to rescue the company from its difficult financial situation by pursuing a company voluntary arrangement (CVA), a form of insolvency that would have allowed it to reduce its financial difficulty by closing stores. However, interest from prospective buyers including Alteri suggested a sale may be the more appropriate route.
Following the decision of Alteri to walk away from the sale, the Santander-led sale process has now entered an accelerated phase as TPG seeks to find a new purchaser in a short space of time.
According to The Press Association, a failure at this stage to track down an appropriate new owner could result in the collapse of the firm, with its losses already significantly increased from £5.2 million in 2015-16 to £17.1 million in 2016-17 and set to rise further in the next 12 months.
Long established double glazing business in operation for over 35 years. Specialise in the supply and installation of quality windows, doors, conservatories, repairs & roofline replacements. Offers invited.
Providing cost-effective and fully refurbished devices to an international client base. Products supplied by the business include smartphones, tablets, smart watches and associated accessories from major international brands such as Apple and Samsung...
FREEHOLD
Very busy convenience store in South Yorkshire. Evidence of turnover and accounting information will be provided at viewing. Offers invited.
LEASEHOLD
|
23
|
|
May
|
Fintech company Loot collapses into administration | ADMINISTRATION
After failing to secure further backing from the Royal Bank ...
|
22
|
|
May
|
Spike in M&A activity in the education sector | BUSINESS SALE
In recent months, the education sector in the UK has witness...
|
22
|
|
May
|
Jamie Oliver restaurant empire collapses into administration | ADMINISTRATION
Celebrity chef Jamie Oliver, who shot to fame after campaign...
Sign up to receive our acquisition alert emails to get your FREE guide
|
12
|
|
Oct
|
Shopping centre in Northern Ireland for sale at £18m | BUSINESS SALE
Bow Street Mall in Lisburn, one of Northern Ireland's b...
|
14
|
|
May
|
TPG puts Poundworld business up for sale | BUSINESS SALE
Poundworld has officially been put up for sale by its privat...
|
04
|
|
May
|
Jacques Vert owner 'prepares to call administrators' | ADMINISTRATION
Calvetron, owner of fashion brand Jacques Vert and other fas...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources