Martin Property Group, the Derry-based business led by brothers Paul, Gary and Mike Martin, is reported to be in talks to buy discount retailer Poundland. According to a Sky News report, the family group is backing Poundland’s management, led by managing director Barry Williams, in a takeover from US investment firm Gordon Brothers, which bought the chain just over a year ago.
The reported approach follows the group’s purchase of car park operator NCP out of administration, which added 93 car parks and took its total to 145. Martin Property Group declined to comment on the Sky News report. However, group director Paul Martin has said the business remains in “acquisition mode” and is “actively looking for further opportunities”, a sign that the brothers are prepared to take on more distressed assets across the UK.
Under the reported terms, the family group would pay a nominal sum for Poundland, take on its loan liabilities and invest millions of pounds in a turnaround plan. It would also keep the store estate and workforce. Poundland still trades from about 600 stores across the UK, including 28 in Northern Ireland, and has 70 Dealz shops in the Republic of Ireland. Gordon Brothers has closed 11 Poundland stores in Northern Ireland over the past year.
Other bidders are still in the running, and a break-up of the portfolio has not been ruled out. The Martins’ offer is reported to be the only solvent bid on the table, while rival suitors would be likely to pursue a pre-pack administration. Advisory firm Alvarez & Marsal, which is running the sale, has been told that Martin Property Group wants a solvent transaction.
A deal would extend the brothers’ business from property and parking into high street retail on a large scale, and would place a chain with around 600 UK stores under Northern Irish ownership. It would also come soon after the NCP purchase, which nearly tripled the number of car parks in the group’s hands. The outcome now depends on Gordon Brothers and its advisers, who must choose between the Martins’ solvent offer, which would keep the stores and staff, and rival proposals that could lead to an administration or a break-up of the chain. For Poundland’s employees and its remaining stores in Northern Ireland, the choice will decide whether the business continues largely intact.
