Poundland owners rush to sell discount retailer before Christmas
The owners of Poundland are racing to find a buyer for the discount retailer ahead of the all-important Christmas trading period, having already received interest from suitors.
Gordon Brothers, who bought Poundland only a year ago, have appointed advisors Alvarez & Marsal (A&M) to sound out interest in the company after several parties approached the Boston-based investment firm about a potential takeover.
A&M have been told to hand Gordon Brothers a list of formal bids by the start of October, as the crucial Christmas trading period kicks off, Morning Wire understands.
The advisors will be approaching financial investors and leading retailers to sound out their interest in a potential takeover in the coming weeks.
This rush process has been designed to secure Poundland’s future as soon as possible, with the hopes of minimising distraction from the busiest trading period of the year.
Gordon Brothers expects that Poundland’s sale will attract significant interest from across the retail sector, it is understood. Sky News first reported the timelines of the deal.
Poundland faced ‘difficult conditions’
The discount retailer has faced a difficult period in recent years, which its current owners have blamed on a challenging economic environment and a drastic restructuring.
The firm fell to an £85m pre-tax loss in the year to September, nearly doubling its £45m shortfall in the prior year. The group’s sales slipped 12 per cent to £1.5bn.
Poundland slashed its headcount by 11 per cent to 14,417 and closed nearly 200 stores in that year.
The company’s directors blamed its widening loss on “difficult trading conditions” and a “significant programme of restructuring”.
The retailer used 2025 as a “reset moment,” it said. “This led to a challenging set of numbers seen in these statutory accounts, but it has positioned the company as well as it could be in terms of its turnaround.”
But Gordon Brothers say Poundland has turned a corner since it bought the retailer for just £1 in July last year.
The group recently opened its first new store in two years and has been working to return its iconic £1 price point across its grocery range.
Barry Williams, managing director of Poundland, said: “Rebuilding trust with customers takes time, but we’re making very significant progress as we deliver the ranges and price simplicity they demand of us.”