Discount retailer B&M plots offer to cherry-pick shops from rival Poundland

B&M European Value Retail, the London-listed discounter, is looking to cherry-pick sites from troubled rival Poundland as it teeters on the brink of administration.

Sky News understands that B&M is part of the Poundland sale process being run by Alvarez & Marsal (A&M), although it is said to be interesting in acquiring only a small number of stores.

One source said the figure was likely to be "in the low double digits".

Money latest: Oil prices ease but there's a sting in the tail

Poundland, which trades from close to 600 sites in the UK and Ireland, is being prepared for either a solvent sale or a break-up which would be likely to involve an insolvency process.

Other retailers including The Range, Lidl, the supermarket chain, and Poundstretcher, owned by Fortress Investment Group, are interested in varying numbers of Poundland shops.

There are said to be at least two solvent offers to buy the company on the table, including one from Ireland's Martin Property Group, which is favoured by Poundland's executive team.

It remains possible that the company's UK and Irish businesses will be sold separately.

Last week, Sky News revealed that Poundland's controlling shareholder, Gordon Brothers, had decided to parachute in a trio of restructuring experts to its board to lead the decision-making process about its future.

Poundland employs close to 12,000 people, and its collapse into administration would be among the biggest failures on the high street for years.

The threat of an immediate insolvency may have receded to some extent, insiders believe, because the chain has sufficient cash to continue trading for the time being.

"The board will now objectively evaluate [its] options, considering all relevant stakeholders, with a view to minimising uncertainty for the people, suppliers and local communities with an interest in the business and its future," Gordon Brothers said in a statement last week.

Warsaw-listed Pepco Group, which sold Poundland to Gordon Brothers last year, retains a minority stake in the chain, which has struggled for years as a consequence of rampant inflation and a diversification of its product mix which drove shoppers to rival chains.

Martin Property Group is said to have committed to retaining Poundland's store footprint and workforce.

It is also understood to have told A&M that it would retain a distribution centre located in prime minister Andy Burnham's Makerfield constituency.

Its offer would 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.

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.

B&M and Gordon Brothers declined to comment.

(c) Sky News 2026: Discount retailer B&M plots offer to cherry-pick shops from rival Poundland