Discount supermarket Lidl has tabled a bid for a single Poundland shop. The German grocery chain's offer to owner Gordon Brothers is for an initial purchase of one store, with the hope of acquiring more if the company's sale process fails and it is broken up.
Sources close to the sale process indicate that Lidl's bid would allow it to "cherry pick" a small number of additional Poundland stores if the company is split among multiple individual buyers. Lidl is one of several retailers vying for a break-up of Poundland, with between six and eight retailers having submitted bids for some of its stores.
While Lidl and other retailers have proposed buying specific sites, other bidders are looking to acquire hundreds of Poundland shops. The owner of The Range and Wilko, CDS Superstores, is reportedly interested in parts of the business and a limited number of locations, having previously considered a bid for the entire company.
Investment groups have also submitted bids for the business. Poundland's management has expressed a preference for a bid from Irish firm Martin Property Group (MPG). To address concerns from rival bidders regarding potential bias, Poundland has appointed three independent directors – Andrew Kirkpatrick, Stephen Welch, and Dominic Young – to its board.
Gordon Brothers initiated the sale of Poundland last month, just over a year after acquiring the company for a nominal £1 fee. Advisors Alvarez & Marsal are currently evaluating various bids, including proposals to carve up the business and offers for the entire company.