Irish property group in talks about rescue deal for Poundland

The privately owned Irish company which this week finalised the purchase of NCP, the car parks giant, has emerged as the mystery party backing Poundland's bosses as they race to agree a takeover of the discount retailer.

Sky News has learnt that Martin Property Group, which has interests ranging from shopping centres to hotels, is proposing a solvent acquisition of Poundland, which has been put up for sale by owner Gordon Brothers little more than a year since it last changed hands.

Even after a store closure programme triggered by its sale last year, Poundland remains one of the biggest general merchandise retailers in the UK.

It trades from close to 600 stores and employs nearly 12,000 people.

The company also has a presence in the Irish retail market.

Sources said that Martin Property Group had become the preferred partner of Poundland's management team - led by managing director Barry Williams - in recent weeks.

Mr Williams wrote to staff just over a week ago to say that he had "expressed a preference for one of the bidders who we've met and in whom we believe would be the best party to work with".

He added: "That does not mean that we won't work with anyone else - quite the contrary.

"Our - in fact MY - sole intention here is to get the best result for our business, colleagues and all our stakeholders."

Andy Bond, the retail veteran who used to run the chain under Pepco Group, its previous owner, has agreed to return to the business, probably as its chairman, if the deal goes ahead.

Warsaw-listed Pepco retains a minority stake in the retailer, which has struggled for years as a consequence of rampant inflation and a diversification of its product mix which drove shoppers to rival chains.

One financier said that Martin Property Group had informed Alvarez & Marsal (A&M), the advisory firm handling the sale, that it wished to undertake the transaction on a solvent basis.

It is understood to have committed to retaining Poundland's existing store footprint and workforce, as well as a distribution centre located in prime minister Andy Burnham's Makerfield constituency.

The source added that a deal would probably involve paying a nominal sum of as little as a pound for the company's equity, with Martin Property Group also committing to repay the balance of existing loans as well as injecting millions of pounds into Poundland to fund its turnaround plan.

Gordon Brothers is also reportedly demanding full repayment of a £30m shareholder loan for which it paid just £1 as part of a deal with any buyer of the business.

This week, Martin Property Group completed the purchase of NCP from administrators at PricewaterhouseCoopers, salvaging a large part of the historic car parks operator.

The Derry-based group owns assets including Preston's Fishergate shopping centre and The Bedford hotel in Belfast.

Several other bidders for Poundland have emerged during the sale process, which kicked off formally last month.

Among them are said to be Modella Capital, the prolific retail investor which owns TGJones, WHSmith's former high street chain.

Fortress Investment Group, the owner of Poundland's rival, Poundstretcher, and Hilco Capital are also said to have expressed interest in a deal.

A break-up of the chain is also a possibility, with discount supermarkets including Lidl believed to be keen on a number of individual Poundland shops.

One source said that Gordon Brothers executives, including the former Mothercare boss Mark Newton-Jones and Frank Morton, its chief investment officer, were hoping to reach a decision on a preferred route for the business as early as next week.

However, there have been growing concerns among retail executives in recent weeks that only Martin Property Group is prepared to acquire Poundland through a solvent transaction, with a pre-pack administration the likeliest outcome with any other buyer.

Some have speculated that an insolvency filing is possible as soon as this month, with Hallowe'en and Christmas trading part of the busiest single quarter of Poundland's trading calendar.

Sky News reported at the start of the process that Gordon Brothers was keen to agree a deal by the end of October.

Sales figures released in recent weeks suggest that Poundland's performance has begun to improve since the Gordon Brothers deal, with a new store format said to have produced positive results.

The auction of Poundland is nearing a conclusion just weeks before the chancellor, John Healey, presents his first Budget, with retailers among those seeking relief from further cost pressure from the Treasury.

A group of executives from supermarkets and hospitality businesses will meet Mr Healey on Tuesday to plead the industry's case.

This weekend, Gordon Brothers, Poundland and Martin Property Group declined to comment.

(c) Sky News 2026: Irish property group in talks about rescue deal for Poundland