Gordon Brothers weighs bids for parts of Poundland

Gordon Brothers is assessing bids for parts of Poundland as it turns its attention away from a proposed whole-business takeover, raising the risk that the discount retailer could enter insolvency. No sale has been agreed, and the company’s future remains undecided. Poundland management named Martin Property Group its preferred bidder earlier in October. However, the offer is understood to be insufficiently funded and to rely on deferred payments. Gordon Brothers said attention had shifted to other active bids, including proposals to buy significant viable parts of the retailer as well as interest in acquiring it as a whole. The group said it would evaluate the options. The sale process has attracted interest from retail operators seeking parts of Poundland, including CDS Superstores, which owns Wilko and The Range; Fortress, owner of Poundstretcher; and Modella, owner of TG Jones. The reports say a sale of parts rather than the whole business could ultimately lead to Poundland entering insolvency. That outcome has not occurred, and the terms or reach of any potential breakup have not been announced. Poundland operates about 600 stores across the UK and employs approximately...