Modella pulls out of race to buy Poundland

TG Jones owner Modella Capital has withdrawn from the competition to purchase Poundland, but the firm intends to acquire some of Poundland's stores if the sale process fails, according to City AM. Modella, which also owns Flying Tiger, had initially shown interest in acquiring the entire Poundland business, but has since dropped its bid.

The private equity firm might still join other firms in acquiring individual Poundland stores if the company is divided by its owners, Gordon Brothers. The budget chain's owners are still seeking a buyer, and retail union Usdaw has warned that Poundland is close to collapse. Six to eight retailers have submitted formal bids for specific Poundland stores, with offers ranging from purchasing a few locations to several shops.

High street firms are prepared to take advantage of Poundland locations if the retailer is broken up. Lidl has bid for one Poundland store to potentially acquire more in a potential break-up, while Iceland is interested in purchasing a limited number of stores if Poundland's owners cannot find a single buyer. Other potential buyers include B&M, The Range, and Poundstretcher.

Martin Property Group, the Irish firm that recently acquired National Car Parks (NCP) from administration, is Poundland's preferred bidder for the entire business. Three M&A experts were added to Poundland's board recently to ensure a fair process, as managing director Barry Williams and finance chief Shaun Wills backed Martin's bid.

Experts are reviewing the submitted bids to secure a sale before the crucial pre-Christmas trading period. Poundland has requested a statement.