Poundland ‘frontrunner’ Xyra Group asks retailer’s founder to join bid

Xyra Group Holdings has asked Poundland founder Steve Smith to support its £12.5m offer for the struggling retailer, which is at risk of collapse. Smith has spoken with the investment firm but does not plan to join takeover efforts before a deal is completed; he has also ruled out investing himself or backing a rival bid.

Poundland’s owner, Gordon Brothers, is seeking a solvent buyer before a creditor moratorium expires on Thursday. Xyra’s offer would leave a £10m gap against Gordon Brothers’ £22.5m share of a £30m loan, while rival Martin Property Group has offered £5m upfront, leaving a £17.5m gap. Xyra is seen as the frontrunner after making progress on proving its funding, though it has yet to complete an acquisition since its 2024 founding; Poundland has 600 stores and 12,000 staff.