TPG ‘plans to snap up Poundworld for £120m’

Chris Edwards, founder and managing director of Poundworld at their HQ in Normanton.
Chris Edwards, founder and managing director of Poundworld at their HQ in Normanton.
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ONE of the world’s biggest buyout firms is reportedly in advanced talks to buy Poundworld, the Yorkshire-based discount retailer.

According to Sky News, US-based TPG has been in exclusive negotiations to buy the company for more than a month.

If the deal goes ahead, it is likely to lead to a large windfall for the retailer’s founder and owner Chris Edwards, who established his first store 41 years ago.

Sky News said that Poundworld is expected to be valued at more than £120m, although it was not clear how quickly TPG and Poundworld will be able to strike a deal.

Both Poundworld and TPG declined to comment on the report. Poundworld has flourished in recent years as cash-strapped consumers seek bargains.

In July last year, Poundworld unveiled plans to create more than 4,000 jobs by opening another 150 stores over the next three years.

Founded on a Wakefield market stall in 1974 by Mr Edwards, the retail chain announced operating profits before exceptional items of £6.2m for the year ended March 2014, an increase of £1.6m over the previous year.

The company is now headed by Mr Edwards and his son, Chris Edwards Junior, who has worked at Poundworld since he was 15.

In 2014, Poundworld announced plans to substantially increase its UK stores, warehouse and distribution capability and overseas supply chain.

Last month, there was market speculation that Poundworld was looking at a range of strategic options, including a sale.

City sources said Normanton-based Poundworld had been working with advisers from PricewaterhouseCoopers on its options.