Poundworld sale rumoured to be edging closer

Poundworld is reportedly edging closer to a rescue deal with its owners TPG are rumoured to be finalising the terms of a sale to Alteri Investors.

It was reported today that Alteri Investors, which is backed by private equity firm Apollo Management and is a former owner of Austin Reed, is closing in on a deal to acquire the budget retailer for a nominal sum.

Sources said the deal could be struck as early as this week with it expected to be structured as a solvent takeover with creditors protected. It is also reported that following the deal Alteri would look to go ahead with restructuring plans that could see up to 100 of its 355 stores close with around 1,500 jobs at risk.

TPG acquired a majority stake in Poundworld in 2015 and is also the owner of Italian restaurant chain Prezzo, which announced it was to close 94 of its outlets across the UK last month.

It is believed if the Alteri deal falls through Poundworld will face insolvency as all other interested parties have indicated that they are only interested in acquiring parts of the business through an administration process.

Retail Sector reached out to TPG however they declined to comment on the reports.