Dealz faces uncertainty as administration looms in UK

Concerns have been raised about the future of the Dealz discount chain in Ireland after it emerged last week that an administrator is set to be appointed to its owner, Poundland, in the UK.

The Dealz chain has been trading in Ireland for the last fifteen years, and its Golden Island, Athlone, store has been in business since February 2012.

Last Thursday it was reported that the owners of Poundland - which uses the brand name Dealz in Ireland - had moved to appoint administrators AlixPartners to the business.

It's understood this process gives the business 10 working days to secure a sale or rescue deal for the company as a whole, including its stores in Ireland.

All Poundland and Dealz stores, including the branch in Athlone, are currently trading as normal despite the insolvency process.

The owners of Poundland and Dealz, Gordon Brothers, bought the retail chain from Pepco Group for the nominal sum of £1 last year.

There are more than 70 Dealz stores in Ireland. In addition to Athlone, there are also other Midlands stores in Mullingar, Longford, Roscommon and Tullamore.

On Monday, the Independent newspaper in the UK reported that talks had taken place about the possibility of Tesco, among a number of other retail companies, potentially purchasing some of the Poundland chain's stores.