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Poundland owner weighs sale of the retailer a year after acquisition

The owner of Poundland is exploring a potential sale of the business just over a year after buying it. According to Sky News, Gordon Brothers is…

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Poundland owner weighs sale of the retailer a year after acquisition

The owner of Poundland is exploring a potential sale of the business just over a year after buying it.

According to Sky News, Gordon Brothers is in talks with advisers about launching an auction process for the discount retailer.

Industry sources told Sky News that Gordon Brothers has yet to make a final decision on a sale, although the process was likely to proceed, with advisers appointed to oversee a potential deal within days.

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The news will result in further uncertainty for Poundland, which employs 12,000 people and has around 600 stores.

When Gordon Brothers acquired the chain from Pepco Group in July last year, the deal resulted in the closure of as many as 200 stores.

In January, Poundland hailed its turnaround progress in its first quarter ending 28 December. It reported that EBITDA had risen to £17.3 million, which was £8.4 million ahead of the same period in the prior year.

At the time, Poundland managing director Barry Williams said the business was on the right track, adding: “While there’s been significant progress as we re-focus and re-energise the business with lower prices and a sharper offer, we know we still have much to do.

“Our focus on our costs has, without doubt, given us a platform for future growth, but no sustainable turnaround can be based on cost management alone.

“That’s why our focus in 2026 will be on delivering the kind of ranges and price simplicity our customers want right across the store – in clothing, homewares as well as our core grocery aisles.”

Sources told Sky News that bidders for the business were likely to include other turnaround funds, private equity firms or other industry players.

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