Poundland 'to be sold' for just £1 as hundreds of stores and jobs at risk

Thousands of jobs are feared to be at risk as somewhat ironically, for as low as £1 to investors amid an "increasingly difficult" landscape.

The currently employs more than 16,000 people across the UK, as well as in Ireland, where it is known as Dealz. Hundreds of its stores could be closed as Britain’s high streets take another blow. Poundland’s owner Pepco Group could sell for a nominal fee owing to the amount of work needed to turn around its troubled fortunes, with one source saying the price would be "effectively a pound".

Turnaround Investors, which are firms specialising in buying struggling businesses in the hopes of turning them around, are said to be interested in the retailer. This includes US based investor Gordon Brothers, the former owner of Laura Ashley, which are believed the current frontrunners in the bidding war.

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Its like-for-like sales fell 7.3% in the three months to December 31, it reported in January. In March the Pepco Group revealed it was examining “all strategic options” to potentially separate Poundland, which has 850 stores, from the wider group.

It said at the time: “Poundland is a strong brand that serves millions of customers every week and had around two billion euros (£1.67 billion) in annual turnover in financial year 2024, but it is also operating in an increasingly challenging UK retail landscape that is only intensifying.

“From April 2025, the UK Government’s additional tax changes announced in the will also add further pressure to Poundland’s cost base. Therefore the board is actively evaluating all strategic options to separate Poundland from group during financial year 2025, including a potential sale.”

Pepco said former Poundland managing director Barry Williams, who took over as managing director of Pepco in September 2023, will also return to his former role at Poundland ahead of a possible sale, the reported.

Stephan Borchert, chief executive of Pepco Group, said: “The board and I are actively exploring separation options for Poundland, including a potential sale, from the group, with consideration also given to the separation of the well-performing Dealz Poland over the medium term.

“Barry Williams did a great job as managing director of Pepco, returning it to like-for-like sales growth, and I am confident he will play a pivotal role in getting Poundland back on track, given his previous success there.”

A Pepco Group spokesperson said: " As announced at the Capital Markets Day on 6 March, Pepco Group is moving away from FMCG to create a simpler business focused on clothing and general merchandise, and is actively exploring separation options for Poundland, including a potential sale, from the Group.

“With Barry Williams’ re-appointment as Managing Director, Poundland is executing a turnaround programme to get the business back on track, focusing on its core heritage strengths, and a simpler pricing proposition and customer offer.”