Former Austin Reed owner Alteri Investors is closing in on a deal to rescue embattled Poundworld.
Alteri, which is backed by private equity giant Apollo, is reportedly finalising the terms of a deal that could secure the futures of many of Poundworld’s 5,300 workers.
According to Sky News, the deal, which would only involve a nominal sum, could be struck by the middle of this week.
Sources suggested the acquisition would be a solvent takeover, protecting all creditors.
However, should Alteri complete the deal, the private equity firm is expected is expected to launch a CVA that will lead to the closure of more than 100 Poundworld shops, with the loss of around 1,500 roles.
If the CVA is approved, Poundworld’s estate would be reduced to around 250 stores, employing 4,000 staff.
Poundworld’s current owner, TPG Capital, had initially intended to carry out the CVA itself but opted against funding the company through that process.
The chain would be the latest in a string of high street names to launch such insolvency processes as retailers battle to right-size their portfolios and streamline property costs.