Discount retail chain Poundland has been sold for £1 to investment firm Gordon Brothers. The symbolic sale marks the start of a significant restructuring process that could see around 100 stores shut.
Poundland’s owner, Pepco Group, confirmed the transaction on Thursday. The group, based in Poland, described the sale price as “nominal.” Sources close to the deal have said the agreed amount was exactly £1.
Despite the low sale price, Gordon Brothers will take control of more than 800 Poundland stores and about 16,000 employees. The investment firm is known for owning brands like Laura Ashley.
The deal will involve a formal restructuring plan, which must go through the High Court. That plan is expected to lead to store closures and rent reductions.
Poundland said the full details of the plan will be announced “in due course.” Creditors are expected to receive the full proposal within days.
According to insiders, around 100 stores may be targeted for closure. Several other outlets could face negotiations on reduced rents with landlords.
The restructuring comes at a difficult time for the discount retailer. In May, the company reported a 6.5% drop in revenues for the first half of its financial year.
For the six-month period ending in March, revenue dropped to €985 million (£830 million), compared with the previous year. During that period, 18 net store closures were recorded.
Poundland has faced trading challenges across multiple categories, including non-food and fast-moving consumer goods.
Pepco acquired Poundland in 2016. The company said the decision to sell would allow it to exit the food and beverage market. It added that the move would support stronger revenue growth and greater profitability.
Barry Williams, who returned as CEO of Poundland in March, will continue to lead the business under Gordon Brothers.
Despite the challenges, the brand will attempt to stabilise and reshape its operations under new ownership.
A Gordon Brothers spokesperson has not yet commented on the store closure rumours.
Retail analysts say the restructuring plan is critical. Without major changes, the brand could struggle to regain its footing in the competitive UK discount sector.
Poundland’s future now depends on the success of the restructuring and its ability to retain customer trust and market share.