Thousands of jobs could be at risk as hundreds of Poundland stores could close, which comes as the Chancellor’s Budget has added “further pressure” for company.
Poundland employs 18,000 people in the UK and Ireland, it could be sold for £1 to investors as the landscape has become “increasingly difficult.”
A source has said that Poundland’s owner Pepco Group said the price for the business could “effectively [be] a pound.”
Turnaround investors are interested in buying the troubled retailer, which includes US investor Gordon Brothers who used to won Laura Ashley.
Poundland reported in the three months to 31 December like-for-like sales dropped 7.3% and in March the company said they are looking into “all strategic options.”
They said, “Poundland is a strong brand that serves millions of customers every week and had around two billion euros (£1.67 billion) in annual turnover in financial year 2024, but it is also operating in an increasingly challenging UK retail landscape that is only intensifying.
“From April 2025, the UK Government’s additional tax changes announced in the Budget will also add further pressure to Poundland’s cost base. Therefore the board is actively evaluating all strategic options to separate Poundland from group during financial year 2025, including a potential sale.”
Barry Williams, the former managing director will now go back to his previous position to head up any possible sale, the Times reported.
Stephan Borchert, chief executive of Pepco Group, said, “The board and I are actively exploring separation options for Poundland, including a potential sale, from the group, with consideration also given to the separation of the well-performing Dealz Poland over the medium term.
“Barry Williams did a great job as managing director of Pepco, returning it to like-for-like sales growth, and I am confident he will play a pivotal role in getting Poundland back on track, given his previous success there.”
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