Inexperienced Xyra Group Emerges as Frontrunner to Acquire Poundland Out of Administration for £12.5m as Moratorium Deadline Looms

Xyra Group, a little-known London-based investment firm, has emerged as the frontrunner to acquire Poundland from administration, having offered £12.5m up front for the retailer. The bid puts Xyra ahead of rival suitor Martin Property Group, which has already had one offer refused by Gordon Brothers, Poundland's Boston-based owner and administrator. Around 12,000 jobs and 600 stores hang in the balance, and Gordon Brothers is racing to find a buyer before Poundland's moratorium on creditors calling in debts lapses this Thursday. Xyra's senior leadership is unconventional. Its founder, Manvedeep Singh, is 23 years old and was previously a builder and non-executive director at a family housebuilder. Its chief executive, Viktor Bronzovic, is a 27-year-old former DJ who started selling wooden jewellery online. The firm has never completed a transaction before. To shore up its credibility, Xyra has in recent weeks added several dealmaking veterans to its team. Andrew Brode, newly appointed vice chairman, is described as the key figure lending the bid credibility. He led the 2013 reverse takeover that floated the predecessor business onto AIM, forming Learning Technologies Group, which he chairs and which was acquired last year for £802m by private equity firm General Atlantic. Former Lord Mayor Michael Mainelli, an economist and accountant who founded City think tank Z/Yen, sits as the sole member of Xyra's advisory committee. Xyra was initially told to provide more details about its finances before its offer would be taken seriously. Sources indicate it has since made significant progress toward providing proof of credible financial backing. Poundland founder Steve Smith, who has been pushing Gordon Brothers to find a buyer, said Xyra appears to have good people behind it, while acknowledging its limited transactional track record.

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