Poundland Sold for 85p
Discount chain Poundland has been sold for just €1 (about 85p) to U.S. investment firm Gordon Brothers, with thousands of jobs now hanging in the balance. The chain’s owner, Pepco Group, is walking away from the struggling business with at least £30 million in debt, and possibly another £30 million in loans to follow. The deal, which still requires High Court approval, is expected to lead to a major restructuring — including the closure of up to 100 stores.
Gordon Brothers, the former owner of Laura Ashley, will pump up to £80 million into the business to help turn things around. Barry Williams, Poundland's current managing director, will stay in charge, and the brand will keep operating under its usual name in the UK and as Dealz in Ireland and the Isle of Man. While Pepco says Poundland is a beloved brand with millions of customers, analysts point to falling sales and a failure to keep up with newer rivals like Temu and Shein as the reason for the sale.
Experts say changing consumer habits and rising costs, including higher employer National Insurance contributions, have made it harder for the pound shop model to survive. Sofie Willmott of GlobalData noted that Poundland's focus on ultra-low prices was no longer enough to compete, especially as supermarkets improved their own discount ranges. Gordon Brothers’ Mark Newton-Jones said the retailer remains “an essential part of the High Street” and promised “exceptional value” going forward.
