Poundland is being circled by a host of private equity firms amid boss Andy Bond mulling a potential management buyout.
Advent, Apax, Bain, Clayton Dubillier & Rice, CVC and KKR are understood to be monitoring the situation in the event of besieged owner Steinhoff needing to raise more cash, according to The Telegraph.
It reports that former Poundland boss Jim McCarthy has been approached to advise on a possible takeover.
In addition to private equity outfits keeping a close eye on the unfolding situation, The Telegraph reports that Bond has been talking to financial backers, including turnaround firm Alteri, about a management buyout.
South African investment outfit Steinhoff saw $10bn wiped off its market value when it reported deep-rooted accounting irregularities in December.
Subsidairy Pepkor Europe, which owns Poundland, has been attempting to distance itself from the crisis.
Earlier this month it secured £180m from Davidson Kempner to fund its expansion plans.
Pepkor Europe’s chief operating officer Sean Cardinaal told Retail Week: “For us, the top priority from a financial perspective was to get independence and sever any kind of alliance with the Steinhoff group.
“The fact that we now have that independence allows us to focus on keeping up momentum in the really good operating companies that we have.”
However, he did not rule out a potential sale of some or all of Pepkor Europe’s retail companies from Steinhoff.