Pepco Group has purchased 71 Wilko stores and is expected to convert them into Poundland stores.

Lease assignments between Pepco, the owner of Poundland, and PwC, the administrators of Wilko, are expected to be completed in early autumn, allowing for Poundland to add to its 800-plus UK portfolio.

As part of the deal, Pepco has said that it will offer employment to some of Wilko’s 12,500 staff, who currently face redundancy.

Wilko fell into administration in August. Efforts were made to buy the firm by the owner of HMV, Doug Putman, however, talks between the retailer and PwC fell through.

Fifty-one of Wilko’s stores were purchased by B&M for £13m last week, with money from these sales being used to pay back stakeholders.

In June, Pepco completed a successful debt refinancing with its inaugural bond issue of €375m, which saw demand from international investors and was multiple times oversubscribed.

Executive chairman at Pepco Group, Andy Bond, said: “The agreement to take control of a number of Wilko store leases will help to bring Poundland’s fantastic prices and offer to even more customers in the UK. It will be pleasing to offer employment to a number of Wilko’s colleagues - who will benefit from being part of a successful and fast-growing pan-European variety discount group.

“Pepco Group is well placed for future success across Europe, supported by its market-leading customer proposition, strong balance sheet and impressive cash flow. The group’s strategy to become a bigger, better, cheaper and simpler business will enable it to continue to providing families on a budget with great range, value and convenience for many years to come.”

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