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Poundland's genitor institution is preparing to manus implicit tens of millions of pounds to assistance money a takeover of the struggling British discount chain.
Sky News has learnt that Warsaw-listed Pepco Group is expected to lend a important eight-figure sum to concern Poundland's ongoing operations arsenic portion of a woody with Gordon Brothers which could beryllium finalised arsenic soon arsenic this week.
Sources adjacent to the process insisted connected Tuesday that a woody had yet to beryllium formally agreed and that it was not yet definite to instrumentality place, with different outcomes inactive possible.
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The Sunday Times tipped Gordon Brothers arsenic a frontrunner to bargain Poundland past month.
If a transaction betwixt Pepco and Gordon Brothers, the erstwhile proprietor of Laura Ashley, is struck, it volition pave the mode for important occupation losses triggered by the apt closure of good implicit 100 Poundland stores crossed the country.
That fig could yet scope betwixt 150 and 200 shops, putting thousands of jobs astatine risk.
Steep rent cuts are besides expected to beryllium negotiated with Poundland landlords, the Telegraph reported astatine the weekend.
Gordon Brothers is said to person seen disconnected contention from Hilco Capital to look arsenic the frontrunner to unafraid a woody successful caller days.
At slightest 1 different enactment is thought to person been funny successful bidding successful caller weeks, portion different suitors - including the caller proprietor of WH Smith's precocious thoroughfare chain, Modella Capital - were eliminated earlier successful the process.
One idiosyncratic adjacent to the concern said it was conceivable that an statement to merchantability Poundland to Gordon Brothers could beryllium announced arsenic aboriginal arsenic Wednesday morning, with a ceremonial restructuring program perchance pursuing soon afterwards.
Poundland employs astir 16,000 radical crossed an property of implicit 800 shops successful the UK and Ireland.
Tax hikes announced by Rachel Reeves, the chancellor, successful past autumn's fund person accrued the fiscal unit connected precocious thoroughfare retailers.
In caller months, chains including Lakeland and The Original Factory Shop person changed hands amid challenging circumstances.
Last weekend, Sky News revealed that River Island, the family-owned covering retailer, was besides moving with advisers connected a restructuring plan, with store closures and occupation losses possible.
Pepco said past period that underlying net astatine Poundland could beryllium wiped retired successful the existent fiscal year, underlining the standard of the situation facing a caller owner.
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In a connection issued to Sky News, a Pepco spokesperson said: "The absorption of the Group and advisers is presently connected a imaginable merchantability of Poundland.
"This is an ongoing process, and nary last decisions person been taken."
Neither Gordon Brothers nor Teneo, which is handling the merchantability process, could beryllium reached for comment.
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