Poundland has been put up for sale just over a year after its owner bought the struggling discount retailer for just £1.
Private equity firm Gordon Brothers has launched a formal sale process for the chain, with hopes of completing a deal within weeks.
The firm has appointed corporate advisory group Alvarez & Marsal (A&M) to approach potential buyers, with the formal process understood to have launched on Wednesday.
A number of potential suitors have already shown initial interest, according to Sky News, with TG Jones and Modella, the owner of Hobbycraft, among those rumoured to have made approaches.
Gordon Brothers acquired Poundland for £1 in June last year and has since overseen a major restructuring of the business as it attempts to reverse significant losses and cope with weak consumer demand.
More than 100 Poundland stores have been closed across the UK as part of the turnaround.
The retailer has also simplified its pricing strategy, returning to £1, £2 and £3 grocery price points across its UK stores while introducing simpler pricing across general merchandise and clothing, a move that was broadly welcomed by customers.
The sale process is expected to move quickly, with hopes internally that a deal can be completed before the crucial Christmas trading period.
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A Poundland spokesman said: “We’re not going to be distracted from the successful recovery we’re putting in place through good old-fashioned back-to-basics retailing. Lower prices. New ranges. Better service.”
The potential sale comes as Gordon Brothers continues to reshape its retail portfolio.
Earlier this year, the firm also acquired the LK Bennett and Radley brands after they entered administration.
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