Former Poundland owner lines up advisers as restructuring looms

The erstwhile proprietor of Poundland is lining up advisers to supervise its modulation to caller shareholders done a court-sanctioned process that volition impact store closures and occupation cuts astatine the discount retailer.

Sky News has learnt that Pepco Group, which is listed connected the Warsaw Stock Exchange, is drafting successful FRP Advisory weeks aft it struck a woody to merchantability Poundland to Gordon Brothers.

Industry sources said FRP had been asked by Pepco to enactment arsenic an observer, with the High Court scheduled to authorisation a restructuring program successful the past week of August.

Under the projected deal, 68 Poundland shops would adjacent successful the abbreviated term, on with 2 organisation centres.

More shops are expected to beryllium unopen nether Gordon Brothers implicit time, resulting successful hundreds of occupation losses.

Pepco is said to beryllium peculiarly focused connected IT systems which Poundland uses successful communal with Pepco's operations successful Poland.

Barry Williams, managing manager of Poundland, said astatine the clip of the deal's announcement: "It's nary concealed that we person overmuch enactment to bash to get Poundland backmost connected track.

"While Poundland remains a beardown brand, serving 20 million-plus shoppers each year, our show for a important play has fallen abbreviated of our precocious standards and enactment is needed to alteration the concern to instrumentality to growth.

"It's sincerely regrettable that this program includes the closure of stores and organisation centres, but it's indispensable if we're to execute our extremity of securing the aboriginal of thousands of jobs and hundreds of stores.

Prior to the deal's announcement, Poundland employed astir 16,000 radical crossed an property of implicit 800 shops successful the UK and Ireland.

Tax hikes announced by Rachel Reeves, the chancellor, successful past autumn's Budget person accrued the fiscal unit connected precocious thoroughfare retailers.

In caller months, chains including WH Smith, Lakeland and The Original Factory Shop person changed hands amid challenging circumstances.

In June, Sky News revealed that River Island, the family-owned covering retailer, was besides moving with advisers connected a rescue program aimed astatine averting its collapse.

Pepco and Poundland declined to comment.