May 12, 2018 / 11:13 AM / 6 months ago

TPG puts British discount retailer Poundworld up for sale: source

LONDON (Reuters) - Private equity group TPG has put British discount chain Poundworld up for sale after receiving expressions of interest, prompting it to put a planned restructuring of the group on hold, a person familiar with the matter said on Saturday.

Poundworld had been due to launch a restructuring to enable it to close some stores as it battles a tough retail environment, but the source said that process had now been put on hold while TPG considers possible bids.

Poundworld says it serves over 2 million customers a week through its more than 350 stores around the country. TPG bought a majority stake in 2015 in Poundworld, which competes with rival group Poundland and other discount groups.

The person familiar with the situation said information on Poundworld had been sent to a variety of potential buyers and there were early signs of interest. It expects the process to be managed over a short timeframe to allow any new buyer to continue the restructuring if required.

Poundworld is not the only retailer to be struggling in Britain at the moment where consumers are strapped for cash and increasingly shopping online.

Already this year Toys R Us UK, electricals group Maplin and drinks wholesaler Conviviality have collapsed, while fashion retailer New Look is closing stores.

The possible Poundworld sale was first reported by Sky News. TPG and Poundworld declined to comment on Saturday.

Reporting by Kate Holton; Editing by Alexander Smith and Ros Russell

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