POUNDLAND is in talks to be bought by a major rival in a move that could create Britain’s biggest ever discount chain.
Fortress Investment Group, the owner of Poundstretcher, is in talks to stage a potential takeover of the ailing high street brand.
It is said to be in discussions with Poundland‘s owners, private equity firm Gordon Brother, according to The Telegraph.
There are currently no plans for a merger of the two brands, according to reports.
A management buyout is also among the options being explored for Poundland.
This is when a company’s management team acquires all of the business’s assets and operations.
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It comes after Gordon Brothers only bought the business last June for £1.
TG Jones and Hobbycraft owner Modella have already made approaches regarding their interest in Poundland.
The sale process is expected to complete swiftly over the coming weeks, amid internal hopes that the process will finish ahead of the key festive trading period.
Poundland has undergone a major overhaul under Gordon Brothers, amid efforts to turn around significant losses and offset weak consumer demand.
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The company shut more than 100 stores across the UK as a result.
It currently employs around 12,000 people across the UK.
The discount brand now has around 651 sites, down from about 800 prior to the reorganisation.
Recovery efforts have focused on simplifying the business, including by cutting stores but also by overhauling its pricing structure.
It has returned to a simple £1, £2 and £3 grocery pricing across all its UK shops, and rolled out simpler pricing for its general merchandise and clothing ranges.
A Poundland spokesman previously said: “We’re not going to be distracted from the successful recovery we’re putting in place through good old-fashioned back-to-basics retailing. Lower prices. New ranges. Better service.”
Earlier this year, Gordon Brothers also bought the LK Bennett and Radley brands from administration.