Poundland seeks extension as rescue deadline expires at midnight
Tesco weighs up to 150 of 600 shops while grocers circle the estate, preferred whole-chain bidder is an Irish property firm
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Poundland hopes for more time to secure rescue deal as deadline looms
independent.co.uk
Poundland has until midnight on Wednesday to secure a rescue deal, and none has been reached, according to sources cited by the BBC. The discount chain filed a notice of intention to appoint administrators at the end of October — a step that bought 10 days of protection — and is now expecting an extension that would keep alive the prospect of a deal satisfying its creditors.
The filing also unlocked around £10 million from the chain's owners to keep paying staff, taxes and stock suppliers while advisers hold talks. Roughly 600 shops and 11,000 employees hang on the outcome. If neither extension nor deal arrives, administrators move in, with corporate advisory firm AlixPartners understood to be lined up for the role.
Tesco has held talks over proposals to buy up to 150 shops, and the grocers Iceland and Lidl have also been in discussions — retailers after slices of the estate rather than the business that runs it. Advisers have also fielded approaches for the brand alone. Interest in the chain as a whole comes from just two names: Xyra Holdings, an investment firm, and Martin Property Group, an Irish real estate company.
Poundland's owner, Gordon Brothers, previously rejected a takeover offer from Martin Property Group; management named the property firm its preferred bidder last month anyway. The £10 million the owners released keeps shelves stocked and wages paid through the window the insolvency filing opened.
Tesco's talks cover up to 150 shops. The chain has roughly 600.