Pepco is inching closer to agreeing a sale of discount chain Poundland, with a deal expected to be announced as soon as this week.
It is being reported that Pepco is planning to inject as much as an eight-figure sum to finance the brand’s operations as part of any potential takeover deal with former Laura Ashley owner Gordon Brothers, according to Sky News.
Sources told Sky News that no deal has been formally made yet, and that Pepco is still exploring other outcomes.
Poundland has drawn up restructuring plans that would see it close as many as 200 stores and make significant rent reductions across the rest of its 800-plus store estate.
A source said that it was possible that a deal could be announced as early as Wednesday morning.
It emerged last month that Gordon Brothers had emerged as the frontrunner to take over Poundland, having fended off competition from the likes of ex-Homebase owner Hilco and Modella Capital, the private equity firm which owns Hobbycraft and The Original Factory Shop.
A Pepco spokesperson said: “The focus of the Group and advisers is currently on a potential sale of Poundland. This is an ongoing process, and no final decisions have been taken.”
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