Pepco Group confirms sale of Poundland to Gordon Brothers
Pepco Group has confirmed that it has sold its Poundland business to Gordon Brothers for a “nominal” price.
The move forms part of the group’s plans to focus on expanding its core Pepco brand as it looks to improve revenue growth and drive higher profitability.
As part of the transaction, Gordon Brothers, Pepco Group and Poundland have agreed to put forward a restructuring plan which will be communicated “in due course”. This will include Gordon Brothers providing £80 million in financing for a turnaround programme.
Under the new ownership, Poundland will be led by its current managing director, Barry Williams. It currently employs around 16,000 people across over 800 stores.
Never Miss a Retail Update!In Pepco Group’s last financial year, Poundland contributed 33% to group revenues but only 5% of EBITDA. Back in March, the group said Poundland was operating in an increasingly challenging UK market with higher wage costs adding pressure to its cost base.
Commenting on the sale to Gordon Brothers, Stephan Borchert, Pepco Group chief executive, said: “The agreed sale of Poundland marks an important milestone in our strategic plan to move away from FMCG and focus predominantly on Pepco, our higher margin clothing and general merchandise business.
“As set out during our Capital Markets Day in March 2025, this transaction will strongly support our accelerated value creation programme by simplifying the group and focusing on our successful Pepco business.
“I am confident that Pepco has the right foundations to be one of Europe’s most successful discount retailers, delivering customer satisfaction, profitable growth and shareholder value.”
Pepco Group said is also considering a separation of its Dealz Poland brand over the medium term.
