Troubles at Steinhoff Attacted Private Equity Bidders to Be Ready to Snap Up Poundland

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Speculation regarding the future of Poundland has drawn in a pack of possible private equity bidders who are ready to snap up the discount retailer.

According to the Sunday Telegraph, various Buyout giants such as Bain, Advent International, CVC, KKR, and Clayton Dubilier & Rice are sniffing around the troubled company in hopes that it might soon be sold by Steinhoff, its disgraced South African parent.

The shares of Steinhoff dropped last December after it disclosed that “accounting irregularities” had provoked a probe.

Poundland has already started distancing itself from the South African group, securing an investment from Davidson Kempner, a hedge fund, amounting to £180m.

The Sunday Telegraph reported that Andy Bond, the executive chairman of the company, has also been looking for additional financial backing, approaching Alteri, a turnaround specialist, regarding a possible management buyout.

It was also reported that Jim McCarthy, its former boss, has also been approached by some private equity houses to offer an advise regarding a deal.

Poundworld, the rival of Poundland that is already owned by TPG Capital, a  US buyout firm, has also experienced some trouble recently after the company had to ask its owner for a fresh cash injection. On the other hand, Poundland reported record Christmas sales.