A MAJOR bargain retailer with 800 UK branches is set to be sold – putting scores of shops at risk.
High street favourite Poundland has brought in advisers from Teneo to manage the proposed move.
Poundland is set to be sold putting Scots stores at risk[/caption]
Parent company Pepco said it was looking at “all strategic options” to separate Poundland from its brand.
A spokesperson told the Telegraph: “As stated at our capital markets day on March 6, we are actively exploring separation options, including a potential sale, for the Poundland business.
“We have started to work with advisers to support us with this process.”
Pepco previously warned that upcoming hikes to employer National Insurance Contributions (NICs) and national minimum wage would significantly add to its costs.
Chancellor Rachel Reeves said during her autumn statement last year that she would raise employers’ National Insurance contributions (NICs) from 13.8% to 15%.
She also announced a reduction to the threshold at which businesses start paying NI contributions from £9,100 to £5,000.
Late last year, it was revealed that profits at Poundland also tumbled by £641million in the year to September, with bosses again blaming slow sales amid a poor outlook thanks to measures set out by Reeves.
It comes weeks after fashion retailer Quiz called in administrators after its shares were removed from the London Stock Exchange.
The partywear company, which began in Glasgow in 1993, has struggled in recent years.
And it has now appointed insolvency practitioner Teneo as administrator to Zandra Retail.
Quiz, which is chaired by the former JD Sports chief Peter Cowgill, warned that the move could see at least 23 branches across the UK shut.
Poundland and Quiz’s difficulties reflect a broader crisis engulfing the UK retail sector.
Lakeland has been put up for sale, and The Original Factory Shop nearing a sale to Baaj Capital.
And WHSmith revealed it is looking to sell all 500 high street stores.
