Troubles at Steinhoff prompt private equity bidders to circle Poundland
Speculation over the future of Poundland has attracted a pack of prospective private equity bidders ..
Speculation over the future of Poundland has attracted a pack of prospective private equity bidders ready to snap up the discount retailer.
Buyout giants including Advent International, Bain, Clayton Dubilier & Rice, CVC and KKR are sniffing around the company in the expectation that it might soon be sold by its disgraced South African parent Steinhoff, according to the Sunday Telegraph.
Steinhoff’s shares plunged in December after it revealed “accounting irregularities” had prompted a probe.
Read more: Shares in Poundland's owner slashed by more than 66 per cent as CEO quits amid accounting probe
Poundland has already begun distancing itself from the South African group, securing a £180m investment from hedge fund Davidson Kempner.
The company’s executive chairman Andy Bond has also been hunting down further financial backing, approaching turnaround specialists Alteri about a potential management buyout, the Sunday Telegraph reported.
Former boss Jim McCarthy has also reportedly been approached by private equity houses to advise on a deal.
Poundland’s rival Poundworld, already owned by US buyout firm TPG Capital, has also been in trouble recently after it had to ask its owner for a new cash injection. Poundland, on the other hand, reported record Christmas sales.
Read more: Pinched-for-cash Poundworld in talks with TPG for more money after poor festive trading
