Iceland eyes Poundland stores as buyers circle budget retailer

Iceland is exploring the possibility of acquiring a limited number of Poundland stores should the retailer's owners be unable to secure a single purchaser, according to recent reports. The Icelandic supermarket chain, which operates over 900 stores in the UK and accounts for 2.2% of the country's grocery market, is keeping an eye out for potential locations if Poundland's extensive 600-store estate were to be divided up among multiple buyers.

Gordon Brothers, the Boston-based investment firm that presently owns Poundland, has received multiple bids for the entire company but may consider splitting the retailer if none of these offers meet their standards. At least six to eight retailers have submitted formal bids, ranging from acquiring a few to several of Poundland's locations.

High street retailers such as Lidl, B&M, The Range, and Poundstretcher have also shown interest in acquiring various number of stores if the company undergoes a break-up. Martin Property Group, an Irish firm that recently acquired National Car Parks (NCP) from administration, is the preferred bidder among those who aim to buy the entire business.

The Irish firm's acquisition of Poundland's management team includes three M&A experts who have been assigned to review the bids in an attempt to finalize a sale before the crucial pre-Christmas trading period. Gordon Brothers has been working to improve Poundland's performance since taking ownership last year, with the retailer's management pointing to a 3.3% like-for-like sales growth in the last three months, and the group is on track to surpass last year's earnings by £80 million.