The identity of the successful bidder for the Polish retail group Piotr i Paweł is likely to be revealed in July, probably some time towards the end of the month, the vice president of the retailer's management board, Robert Krzak, has told ESM.
Earlier this week, Glos Wielkopolski, a Polish newspaper, reported that Portuguese operator Jerónimo Martins has made the highest bid for the retailer, and that the management of Piotr i Paweł was expected to announce this later this week.
Speaking to ESM, Krzak said, "We have a few binding offers, we are working on them. I won't be in a position to give an announcement this week, definitely not. But in a few weeks, certainly before the end of July, I will be in a position to say so."
As to whether Jerónimo Martins, which operates the Biedronka chain in Poland, is indeed in the running, Krzak said, "There are rumours in Poland in all the newspapers that we have already been bought by Biedronka, but this is not the case. We are in talks with them, but nothing is confirmed.
"The company is not sold, we are still in talks with a number of players."
Another retailer thought to be in the running to acquire Piotr i Paweł is Auchan, which also has a presence in Poland. Earlier in the year, Carrefour was also named as a potential suitor.
Financial Stability
In February, Piotr i Paweł secured financial investment from TFI Capital Partners, a Warsaw-based investment fund, ensuring its stability.
Commenting on this, Krzak added that while the firm was not close to bankruptcy, the investment came at just the right time.
"At the beginning of this year, we really had some financial problems, cashflow problems, but for the time being, this is under control," he said.
"I wouldn't say we are cash rich, but I would say we can manage. I think that we started to remedy the situation before it was too late."
In addition, in May, former Tesco Polska boss Marek Miętka was appointed president of the management board and CEO of the retailer.
Major Operator
Were Jerónimo Martins to take over the 145-store chain, it would add to its already comprehensive network of more than 2,800 outlets in Poland, which includes both Biedronka and Hebe, a health and beauty retailer.
It is not clear whether Jerónimo Martins would seek to retain the Piotr i Paweł name, and, indeed, the brand's positioning, which is seen as a more mid- to premium-type retailer in a country awash with discounters.
Indeed, on the future direction of the company, Krzak believes that the "Piotr i Paweł brand will stay in the market, but I don't know how the product selection will look, or if there will still be Piotr i Paweł store brands. It's still all under discussion."
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
