Poundland ‘frontrunner’ Xyra Group asks retailer’s founder to join bid
The little-known investment firm emerging as a “frontrunner” to buy Poundland has called on Steve Smith, the retailer’s founder, to bolster its bid for the struggling firm. Xyra Group Holdings, founded by 23-year-old Manvedeep Singh, has asked Smith to lend support to their £12.5m bid to keep Poundland afloat as the discount retailer veers towards [...]
Investment firm Xyra Group, the frontrunner in the race to purchase struggling retailer Poundland, has approached founder Steve Smith to bolster their £12.5 million bid. The 23-year-old company, founded by Manvedeep Singh, has sought the support of the retailer's creator in their efforts to keep Poundland operational as the discount firm faces potential collapse.
Smith has engaged in discussions with Xyra Group, but has not yet decided to participate in any takeover attempts until a deal is finalized. The founder of Poundland, who established the company with his father Kevin Smith in 1990, had previously contemplated investing in the business or supporting an alternative offer from Martin Property Group but has dismissed both possibilities.
Gordon Brothers, the US investment firm that owns Poundland, is actively searching for a solvent buyer to prevent a moratorium on creditor calls on Thursday. The company's filing for administrators has raised concerns about its impending collapse, but it is now engaging in talks with several potential bidders for a sale of the firm as a functioning entity.
Gordon Brothers' initial attempt to secure a buyer faltered due to its insistence on being reimbursed £22.5 million for a loan inherited from PepCo, the retailer's former owner. PepCo holds £7.5 million of this debt, which totals £30 million, but has agreed to postpone payments. Xyra Group's proposal to pay Gordon Brothers £12.5 million upfront leaves a £10 million gap in the investment firm's share of the loan.
Martin Property Group has offered £5 million initially, resulting in a £17.5 million deficit. Xyra Group's status as the "frontrunner" to acquire Poundland is attributed to their demonstrated progress in providing evidence of credible backing. Despite speculation about the source of funding, Xyra Group has made notable advancements.
The investment firm, led by 27-year-old Viktor Bronzovic, a tech entrepreneur and former DJ, does not have a lengthy track record of acquisitions since its establishment in November 2024. Gordon Brothers is facing significant political pressure as the retailer's collapse could impact its 12,000 employees and 600 stores. The US investment firm is scheduled to appear before parliament's business select committee on Wednesday to address its efforts in finding a credible buyer for Poundland.
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