Poundland’s management team has engaged advisers to explore a potential management buyout, intensifying a dispute with the company’s current owners over the retailer’s future direction. The move comes after Gordon Brothers, which took control of Poundland last year, unexpectedly placed the business up for sale in August, triggering concerns about its financial stability and prompting credit insurers to halt new coverage for suppliers.

Management has brought in consultants from Interpath to assist with a buyout proposal, signaling a growing rift with Gordon Brothers, which has appointed Alvarez and Marsal to oversee the sale process. Barry Williams, Poundland’s managing director, and Andy Bond, former chief executive of Asda, are leading the management bid, which was submitted to Gordon Brothers recently.

The proposed management offer reportedly does not include any plans for store closures and is believed to be backed by a yet undisclosed UK-based investor. Industry insiders suggest that this bid is unlikely to meet the approximate £30 million valuation set by Gordon Brothers, who acquired Poundland for a nominal sum of £1 in the prior year.

Despite the valuation gap, sources indicate that the management’s buyout effort enjoys support from Pepco, Poundland’s previous owner, which still retains a 30 percent equity stake. The management offer competes with separate bids from other potential buyers, among them Fortress Investment Group—owner of rival discount chain Poundstretcher—and Modella Capital, proprietor of TG Jones.

There are concerns within the retail sector that some prospective buyers may aim to acquire select Poundland stores rather than maintaining it as a unified chain, a strategy that could lead to the company’s breakup.

Poundland currently operates approximately 600 stores and employs around 11,000 people across the United Kingdom. Both Poundland and Gordon Brothers declined to comment on the ongoing sale process.