Poundstretcher, one of Britain’s biggest discount retail chains, is being sold to the owner of Majestic Wine and Punch Pubs.

Sky News has learnt that Fortress Investment Group has struck a deal to acquire Poundstretcher, which trades from more than 320 stores across the country.

Based in Leicester, Poundstretcher employs approximately 4,000 people, making it one of the UK’s most significant privately owned retailers.

The chain, which was established in 1981, sells food, toiletries, garden products and homeware brands.

Fortress has agreed to buy the company from Aziz Tayub, a businessman who had previously indicated that he wanted to float it on the London stock market.

City sources said a deal was likely to be announced later on Thursday.

The price being paid by Fortress was unclear.

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One insider said that Trevor Strain, the former Wm Morrison operating and finance chief, would join the Poundstretcher board after the transaction completes.

Andy Atkinson, another former Morrisons executive, is expected to become chief executive of the discount chain.

Poundstretcher competes with rivals including Poundland, which is part of Pepco, and B&M – two more of the largest so-called variety retailers in Britain.

The sector has seen explosive growth in recent years amid a growing squeeze on household finances, although it has also been impacted by inflationary pressures.

One person close to the deal said it had been orchestrated by Ahsan Aijaz, the co-head of private equity at Fortress.

Managing close to $48bn (£38.2bn) in assets, Fortress has placed a number of bets on British consumer-facing businesses.

It bought Punch Pubs in 2021, having snapped up Majestic two years earlier.

Last month, Majestic confirmed a Sky News report that it was buying Vagabond Wines out of administration in a deal which salvaged more than 170 jobs.

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A spokesman for Fortress declined to comment on Thursday morning.

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