Up to 200 Poundland stores could close under rescue deal
Up to 200 Poundland stores could be closed with the loss of thousands of jobs as part of a potential rescue deal.
Back in March, the retailer’s parent company Pepco Group said it was exploring a sale of Poundland as part of a wider strategic shift as it looks to focus on its more profitable Pepco brand.
At the time, it said the retailer was operating in an increasingly challenging retail market with higher wage costs looming following the tax changes announced by the Government in October’s Budget.
According to The Sunday Times, Gordon Brothers has emerged as a frontrunner to take control of the discount chain.
Never Miss a Retail Update!Other firms interested in acquiring Poundland are understood to include Modella Capital, which recently purchased WH Smith, Bensons for Beds owner Alteri, and Lakeland owner Hilco Capital.
Industry sources told The Times that the chain could be sold for “effectively a pound” due to the work required to turn the business around.
Poundland operates 825 stores around the country and employs around 16,000 staff.
