Pepco Group BV PCO

Modella Capital, the retail investor that owns TGJones and Hobbycraft, is said to be among the possible bidders.

Poundland's owner has picked advisers to handle a sale of the discount chain just over a year after it last changed hands. Sky News has learnt that Gordon Brothers, the retail investor which also owns LK Bennett and Radley, has hired Alvarez & Marsal (A&M) to run an auction of the 600-store business. The appointment of A&M follows a beauty parade of advisers held in the last week, and is expected to result in a sale process being launched in the autumn.

The investor is in talks with advisers about launching an auction process for the chain, which employs approximately 12,000 people across around 600 stores in Britain.