Discount retail chain Poundland has been sold to US-based restructuring specialist Gordon Brothers for £1, with the new owner set to inject up to £80 million to stabilise the business. The move signals a significant shake-up for the chain’s 800-store footprint across the UK and Ireland and puts thousands of jobs at risk.
The deal sees Pepco Group, the current majority owner, exit its controlling stake while retaining a minority interest. The sale enables Pepco to refocus on its core European brand, which generates higher margins, as it withdraws from UK grocery and household retail operations.
Gordon Brothers is expected to lead a major turnaround programme that includes rent renegotiations and the closure of a substantial number of underperforming stores, pending court approval. The Poundland and Dealz brands will remain active across the UK, Republic of Ireland, and Isle of Man.
Chief executive Barry Williams, who resumed leadership in March, will continue to head the business through the restructuring process. Despite the nominal sale price, Pepco is expected to recover tens of millions from the transaction, which has been in the works for months and is scheduled to be completed by September.
