Poundland has received two new takeover offers from private equity firms.

It is understood that Lakeland owner Hilco Capital and turnaround investor Endless each submitted indicative proposals for the discount chain on Friday (25 April) after it was put up for sale last month, Sky News reported.

The two firms join Bensons for Beds owner Alteri Investors as bidders in the auction of Poundland.

It is understood that The Original Factory Shop owner Modella Capital could also be among the group of interested parties for the chain.

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Poundland owner Pepco confirmed in March it was considering a sale of the discount giant as it continued to rack up losses following a slowdown in trading.

The group, which has hired Teneo to handle an auction, blamed rising costs and the “increasingly challenging” UK retail market.

Poundland continued its negative like-for-like sales performance for the first two months of the year, with Pepco reporting an “underperformance of all categories”.

Last week, Poundland slimmed down its leadership team which saw a dozen senior directors in the discount chain’s digital, commercial, buying, retail, HR and supply chain teams leave the business.

Among those impacted by the job cuts are director of digital Tom Hill, head of digital loyalty and engagement Emma Collins, head of labour and productivity Steve Young, and head of retail excellence Pete Wyatt.