B&M joins battle to ‘cherry pick’ Poundland stores in sale

Discount retailer B&M has joined the competition to acquire select Poundland stores as its Boston-based owner, Gordon Brothers, prepares for a rushed sale of the company. London-listed B&M European Value Retail is interested in purchasing a small number of Poundland stores if the retailer is broken up during a potential sale of the entire company, sources told City AM.

B&M will compete with budget supermarket Lidl for the best-placed Poundland stores. The German grocer bid for a single Poundland shop last week, aiming to 'cherry pick' additional locations if a break-up occurs. Other retailers like The Range, Poundstretcher, Aldi, and Home Bargains are also reportedly interested in acquiring some of Poundland's stores, although none have submitted formal bids, according to City AM.

Poundland's management favors the offer from Irish firm Martin Property Group, which recently acquired National Car Parks (NCP). Gordon Brothers has brought in three M&A experts to evaluate the bids and secure a sale before the crucial pre-Christmas trading period. These experts were added to Poundland's board to address concerns from rival bidders that they would struggle against management-endorsed bidders.

The restructuring experts began reviewing the bids in an effort to facilitate a sale before the critical period. Gordon Brothers initiated the sale last month, less than a year after acquiring the company for a nominal £1 fee from PepCo.