Retail news round-up on March 2, 2015: TPG could acquire Poundworld, Dunelm founder buys Morrisons stake, investors concern over Sports Direct’s delay on finance director and more.
Poundworld could change hands in £120m deal
TPG is reportedly in advanced discussions to acquire Poundworld for as much as £120m.,
The US-based private equity firm has been in negotiations to snap up the chain for more than a month, according to Sky News.
PricewaterhouseCooper is said to be advising on the sale.
Former Asda chief executive Andy Bond is also understood to be interested in Poundworld as he prepares to launch new fashion retailer Pep & Co later this year.
Dunelm founder buys stake in ailing Morrisons
Dunelm Mill’s billionaire founder Bill Adderley has bought about two million shares in embattled grocer Morrisons, saying the supermarket retailer has “turnaround potential.”
“I bought them because I thought it couldn’t get any worse,” Adderley said in an interview with The Sunday Times.
“My belief is that shopkeepers should run shops and they should concentrate on getting their fruit and veg right – not going out and buying other businesses that aren’t relevant.”
Investors ‘concerned’ over Sports Direct’s delay on finance director
Sports Direct is facing growing unrest among its largest shareholders over the retail giant’s prolonged failure to find a new finance director, putting billionaire founder Mike Ashley on a collision course with the City.
Crispin Odey, Sports Direct’s third largest institutional investor, said that a 14-month wait to appoint a finance director was a “big concern.”
Odey warned that the lack of a finance director meant there was no one to question Ashley’s decisions.
“This puts too much power into one person’s hands,” he told The Sunday Telegraph. “They have got to move quickly on this.”
Worldstores gets £25m investment to launch delivery services
Kiddicare owner Worldstores has received a £25m cash investment from a consortium of investors led by Goldman Sachs, The Telegraph reported.
The online furniture retailer said it will use the funds to buy a fleet of 100 delivery vehicles as it prepares to launch next-day delivery services seven days a week.
The company is keen to set up its own delivery service after being unimpressed by delivery options for its larger furniture items.
Warren Buffett ‘embarrassed’ by Tesco investment
Billionaire investor Warren Buffett has admitted being “embarrassed” by taking too long to exit a £1.5bn investment in Tesco as it became mired in an accounting scandal.
The indecision meant his Berkshire Hathaway investment company lost £287m on the supermarket giant.
“I made a big mistake with this investment by dawdling,” Buffett wrote in his annual letter to shareholders in Berkshire’s 50th year.
Buffett also said Berkshire was now in a position to appoint his successor, but did not reveal who this would be.
MySale vows to break even this year
Sir Philip Green-backed etailer MySale has promised investors that it is on track to at least break even this year as it fights back from a catastrophic profit warning and a big pricing blunder during last summer’s flotation.
The company admitted it had endured a “challenging” six months to the end of December as it dropped into the red.