Last month, Poundland’s owner, Pepco Group, said it was considering a possible sale of the UK budget retailer after warning of “more difficult” trading conditions
Poundland is set for a “restructuring” process after the high street discount chain was sold to investment firm Gordon Brothers. The retailer – which has 825 stores in the UK and employs around 16,000 people – announced the deal today.
Last month, Poundland’s owner, Pepco Group, said it was considering a possible sale of the UK budget retailer after warning of “more difficult” trading conditions. These conditions included the rise in employer National Insurance Contributions (NICs) and the National Minimum Wage in April.
At the time, the Polish group – which has owned the brand since 2016 – said it was examining “all strategic options” to potentially separate Poundland from the wider group so it could turn its focus on more profitable areas.
Pepco Group says it has completed the sale of the business for a “nominal” fee. It comes after an auction by Poland-based Pepco to sell Poundland after a sharp downturn in trading over the past year.
Poundland’s more-than-800 stores and roughly 16,000 employees will be transferred to the ownership of Gordon Brothers, which owns brands including Laura Ashley, as a result.
However, as part of the deal, Poundland is set to undergo a restructuring plan. Poundland said the details will be communicated “in due course”.
Stephan Borchert, Pepco Group chief executive, said: “This transaction will strongly support our accelerated value creation programme by simplifying the group and focusing on our successful Pepco business.”
The CEO emphasised that the transaction would “strongly support our accelerated value creation programme by simplifying the Group and focusing on our successful Pepco business.”
Borchert expressed confidence that Pepco possesses “the right foundations to be one of Europe’s most successful discount retailers, delivering customer satisfaction, profitable growth and shareholder value.”
The brand has reportedly been sold for just £1 – eight years after it dropped its own guarantee that all items at the store would cost just £1 in 2017. Items have since been priced between 50p and £5.
In a statement released in March before the sale, Pepco said: “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 Budget 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.”