South African retail giant Steinhoff, which pulled out of the bidding for Argos at the eleventh hour earlier this year, has reportedly announced its interest in buying Poundland.
It comes as the discount store's chief executive Jim McCarthy prepares to step down after a decade at the helm. Poundland recently reported an 84% plunge in pre-tax profits to £5.9m in the year to March 27. This was put down to the retailer's struggles to absorb its recent takeover of 99p Stores due to an "unwelcome and lengthy" competition probe, which delayed the transaction by nine months.

At the time Poundland finally acquired the rival retailer, trading had deteriorated to the extent of bare shelves, and Poundland faced a mammoth task of having to convert the stores.

Steinhoff, meanwhile, now has a hold on approximately 23% of the company, having acquired private equity owner Warburg Pincus' 15% stake. According to The Telegraph, Steinhoff said last week that it is hoping to buy the rest of the retailer with cash.

Mr McCarthy has said that the company would "put the interests of all stakeholders at the forefront," but has refused to comment further on the takeover interest of Steinhoff.