Poundland hopes for more time to secure rescue deal as deadline looms

Hopes are mounting that Poundland can get more breathing space to hash out a rescue deal as the retailer approaches a deadline to secure a buyer.The struggling retailer filed a notice of intention to appoint administrators at the end of October.This gave the business 10 days to secure a potential rescue deal, which will expire at midnight.It is understood a deal has not yet been reached, but the company is expecting to get an extension which would allow more time, according to sources cited by the BBC.It is understood that Poundland’s owners have enabled the release of around £10 million worth of funding to be used for things such as paying staff, taxes and suppliers of stock.Any extension to Wednesday’s deadline could mean the prospect of a deal that would satisfy the company’s creditors remained on the table.If not, then it is expected that administrators would be appointed – with corporate advisory firm AlixPartners understood to be lined up.This would pose a threat to the future of its roughly 600 shops and 11,000 employees.Advisers have been in talks with parties interested in buying the brand or parts of the business such as swathes of shops.It has held talks with potential bidders including Tesco over proposals to buy up to 150 shops, and other chains such as Iceland and Lidl.Investment firm Xyra Holdings has emerged as a potential buyer for the entirety of the business, while Irish real estate firm Martin Property Group is believed to remain interested in a deal.Gordon Brothers previously rejected a takeover offer from Martin Property Group but management named them as their preferred bidder last month.