Discount retailer Poundland is set to be sold for only £1 as the bidding war for the high street staple reaches a surprising conclusion.
Gordon Brothers, the former owner of Laura Ashley, has become the frontrunner to takeover of Poundland, which employs more than 16,000 people across the UK and Ireland.
A source told The Times Gordon Brothers is one of the multiple bidders putting their hat in the ring but the firm did not yet have preferential status.
Currently, bids for the Poundland are expected to take place on Tuesday, May 20. The company is owned by Warsaw-listed retailer Pepco and has 825 stores.
Poundland is being sold
POUNDLANDThis latest development for the Poundland brand comes after a string of store closures that have been the retailer leave the high street in many areas.
While the bidding war in not yet finalised, Gordon Brothers appears to was in pole position unless another suitor comes forward.
It is expected that Poundland will be sold for a nominal fee, according to several sources who were familiar with the intricacies of the deal.
A source told The Times would be sold for “effectively a pound”. This is due to the turnaround project that will be needed to reverse its business fortunes.
Last year, Poundland made £1.6billion in sales in the face of a turbulent trading period, brought on by the cost of living crisis and lack of footfall.
Over the period, the discount retailer's like-for-like sales fell 7.3 per cent in the three months to December 31.
On these numbers, Pepco cited the factt that Poundland faced “a more difficult sales environment and consumer backdrop in the UK, alongside margin pressure and an increasingly higher operating cost environment”.
The parent company also promised to increase the number of products it sells for £1 to get the chain "back on track" and entice consumers.
In March 2025, Pepco announced that it was putting Poundland up for sale to prioritise its more successful Pepco and Dealz brands.
The firm's decision is partially due to increased costs stemming from wage increases and tax hikes, outlined in Chancellor Rachel Reeves's Autumn Budget.
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Other retailers, including such as B&M, Home Bargains and The Range, have suffered a similar turbulent trading period.
A Pepco Group spokesperson said: "As announced at the Capital Markets Day on March 6, Pepco Group is moving away from FMCG to create a simpler business focused on clothing and general merchandise, and is actively exploring separation options for Poundland, including a potential sale, from the Group.
"With Barry Williams’ re-appointment as Managing Director, Poundland is executing a turnaround programme to get the business back on track, focusing on its core heritage strengths, and a simpler pricing proposition and customer offer."
