Santander has loaned Poundworld the sum just months after private equity firm TPG snapped up a majority stake in the chain
The discount retailer is investing in a new IT system, as well as building a new 500,000 square foot distribution centre near its head office in Wakefield, to help meet the demand of its growing number of stores.
The five-year loan will also help Poundworld meet its target of opening 60 new stores a year across the UK, in addition to the 300 stores that are already open.
Chris Evans, Poundworld’s co-founder, said: “Santander’s help two years ago put the business in firm footing, and its 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.”
Earlier this year, the retailer sold a majority stake to TPG, who pledged to inject new equity capital to fund a quicker store roll-out, and invest in a new warehouse.