Poundland is set to be sold off, with the budget retailer having reportedly hired advisory firm Teneo to oversee the sale of the popular discount chain
Poundland is set to be sold with a number of its 825 stores said to be at risk of closure, according to reports.
The budget high street retailer is said to have hired advisory firm Teneo to oversee a sale of the business. It has been reported that a number of Poundland stores could end up closing if the chain is sold. It comes after Pepco Group, parent company of Poundland, confirmed last week that is examining “all strategic options” for the business, including a potential sale.
A spokesman for Pepco Group told The Telegraph: “As stated at our capital markets day on March 6, we are actively exploring separation options, including a potential sale, for the Poundland business. We have started to work with advisers to support us with this process.” The Mirror has contacted Pepco and Teneo for comment.
The firm had already hired Alix Partners to carry out a strategic review of the brand at the start of this year. It comes after Pepco warned underlying earnings will come in at between €50million and €70million (£41.9 million and £58.6 million) down from €153million in 2023/24.
The company blamed a “challenging” UK retail landscape, along with changes announced in the Budget, including higher National Insurance contributions for employers and an increase in the minimum wage. The rate of National Insurance paid by firms will rise from 13.8% to 15% from April 2025.
The earnings threshold for when employers start paying National Insurance will also be lowered from £9,100 per year to £5,000. At the same time, minimum wage will rise by 6.7%. For someone aged 21 and over, minimum wage will rise from £11.44 an hour to £12.21 an hour, while those aged 18 to 20 will see their rate rise from £8.60 an hour to £10 an hour. If you’re under 18 or you’re an apprentice, minimum wage is rising from £6.40 an hour to £7.55 an hour.
In a statement issued last week, confirming its intention to explore a 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.”
