Poundworld’s owner has halted plans for a possible Company Voluntary Arrangement (CVA) after receiving expression of interest from prospective buyers.
The value retailer’s private equity parent company TPG Capital, which has owned the firm since 2015, has instructed Deloitte to secure a buyer for the firm by the end of the month.
According to Sky News, potential bidders for the retailer were approached last week.
This development has put plans for TPG Capital to seek approval from landlords to close up to a quarter of Poundworld’s 355-strong store estate, risking 1,500 jobs, on hold.
The US private equity firm, which also owns Victoria Plum and beleaguered restaurant chain Prezzo, reportedly made the decision to sell the value retailer after being approached by several interested parties.
However, a source close to the situation told Sky News that the firm’s prospective new owners may want to launch their own CVA for the business before the next rent-quarter day at the end of June, hence the tight deadline on securing a buyer.
Poundworld, which recorded a pre-tax loss of £17.1m in the year to March 31, 2017, is being helmed by executive chairman Steve Johnson following the exit of its former chief executive Gerry Gray in December.