Poundworld faces collapse as buyer pulls out

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.


Share this article



Latest Businesses for Sale

Hardware & DIY
Derbyshire, Yorkshire and the Humber, UK

Very busy hardware and DIY store situated in the centre of this busy small town in Derbyshire – substantial freehold property which offers spacious retail and ancillary space together with super family accommodation. Offers invited.

Asking Price: £450,000
Turnover: £360,000

LEASEHOLD


Licensed Convenience Shop
Newcastle, Yorkshire and the Humber, UK

This is one of the best convenience stores seen for some time – the premises have been fitted and equipped to the highest of standards more usually associated with the corporate national traders. Offers invited.

Asking Price: Offers Invited
Turnover: £912,000

LEASEHOLD


News & Convenience
Dudley, Yorkshire and the Humber, UK

Superbly fitted news and convenience store which has been in the same hands for over 20 years and has proved itself to be a highly profitable business for our clients who have earned a very good living indeed. Offers invited.

Asking Price: Offers Invited
Turnover: £384,000

FREEHOLD



View more businesses for sale

News Search

Latest News

 
22
 
Mar
 

Scunthorpe nightclub up for sale | BUSINESS SALE

A former nightclub based in Scunthorpe has been put up for s...

 
21
 
Mar
 

Kent Logistics provider completes a successful acquisition | BUSINESS SALE

A Kent-based personalised logistics provider, backed by Livi...

 
20
 
Mar
 

Warrington construction company enters administration | ADMINISTRATION

A prominent construction business headquartered in Orford Gr...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
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...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources