POUNDWORLD has doubled the level of funding from its bank to £50m to support its aggressive growth plans to add more than one store a week.
The value retailer was bought by TPG Capital in May for £150m and has now secured a £50m funding package with Santander. The bank had previously agreed a narrower £25m package 20 months ago.
Poundworld increased its revenues by one-fifth in the year to March 2015, to £422.3m, on the back of 38 store openings. Its new owners have backed plans to open 60 stores a year from 2016.
“Our ambition is to continue to introduce Poundworld’s value proposition to even more cities and towns across the UK,” said Chris Edwards, co-founder of Poundworld.
“Santander’s help two years ago put the business on a firm footing and their support helped us to improve terms with our suppliers, landlords and credit insurers.
“The business was in a great position to attract the interest of TPG, resulting in its investment earlier this year and, combined with the new facilities from Santander, Poundworld is in a strong position to push forward with its next phase of growth.”
Poundworld has more than 300 stores with a further 50 multi-price stores operating as Bargain Buys. The funding will support investment in an IT system and 500,000 sq ft warehouse facility near to its Wakefield head office in Wakefield.
The Santander deal team was led by Paul Watkin, relationship director in its large corporate team, structured finance director Adrian Rowles and international director Mark Lonsdale.
Lawyers from the Leeds office of Bond Dickinson, led by finance partner, John Connor, provided legal advice to Santander.
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