Thousands of jobs are hanging in the balance as popular discount retailer Poundland has been sold to investment firm Gordon Brothers – the former owners of Laura Ashley – in a dramatic deal valued at just €1.
The sale, initially reported by Sky News, signals major upheaval for the high street chain, with around 100 Poundland stores expected to shut across the UK and Ireland.
The brand, renowned for its “everything for £1” approach, currently employs approximately 16,000 staff across more than 800 locations.
While the transaction price was symbolic, the previous owner – Poland-based Pepco Group – is set to recover tens of millions of pounds as part of the agreement. Pepco will also retain a minority stake in the business following the handover.
The sale comes amid rising pressure on British retailers, with Poundland suffering from weakened trading conditions and increased operational costs. The Chancellor’s employer tax rises, introduced by Rachel Reeves in last November’s Budget, have added further financial strain on high street businesses.
A restructuring plan, which will require approval from the High Court, is being developed as part of the deal. Further details will be shared “in due course,” Pepco confirmed.
The group said the move would allow it to refocus on its core Pepco operations, reduce exposure to food and drink, and enhance long-term profitability.
Stephan Borchert, CEO of Pepco Group, stated: “This transaction will strongly support our accelerated value creation programme by simplifying the group and focusing on our successful Pepco business. Poundland remains a key player in UK discount retail, with millions of customers annually and a well-loved brand.”
This development marks a pivotal moment for Poundland, with high street shoppers, employees, and landlords all bracing for the potential impact of widespread store closures and renegotiated lease agreements.
