Poundland owner plots sale of discount chain a year after takeover

The owner of Poundland is exploring a sale of the discount retailer just over a year after buying it in a deal which resulted in the closure of as many as 200 stores.

Sky News has learnt that Gordon Brothers is in talks with advisers about launching an auction process for Poundland, which employs about 12,000 people across Britain.

Industry sources said on Tuesday that Gordon Brothers had yet to make a final decision about a sale, but was likely to proceed with a process.

Advisers are expected to be appointed to oversee a prospective deal within days.

The prospect of another change of ownership will cast more uncertainty over Poundland's future, even as people close to the business insist that its financial performance has enjoyed an upturn.

Poundland now trades from roughly 600 shops, even after swingeing cuts implemented last year through a court-sanctioned restructuring plan.

Retail executives suggested that bidders were likely to include other turnaround funds, private equity firms or other industry players.

The chain's performance is understood to have stabilised in recent months, with Poundland expected to issue a trading update in the coming days.

In January, its managing director, Barry Williams said the business was "on the right track" months after coming close to collapse.

"While there's been significant progress as we re-focus and re-energise the business with lower prices and a sharper offer, we know we still have much to do," he said.

"Our focus on our costs has, without doubt, given us a platform for future growth, but no sustainable turnaround can be based on cost management alone.

"That's why our focus in 2026 will be on delivering the kind of ranges and price simplicity our customers want right across the store - in clothing, homewares as well as our core grocery aisles."

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Gordon Brothers acquired the discounter in July 2025 from Pepco Group, the Warsaw-listed retailer, for €1.

It has since appointed an experienced finance chief, Shaun Wills, who held the same role at fashion retailer Superdry.

Poundland serves millions of customers each year, and immediately prior to its restructuring employed more than 14,000 people.

Responding to an enquiry from Sky News on Tuesday morning, a Poundland spokesman said: "We've made very significant progress over the past year with a recovery plan that's created simpler, better value for customers centred around thousands of items back at our iconic £1 price point."

He declined to comment on the talks with advisers or the possibility of a new sale process.

Gordon Brothers, which also owns the LK Bennett and Radley fashion brands, did not respond to a request for comment.

It was unclear on Tuesday why Poundland's new owner was keen on such a swift exit from its investment if the business had begun to improve its performance.

The British high street remains caught in the crossfire of shaky consumer confidence and rising cost burdens, the latter of which has been exacerbated by government tax hikes.

Last week, Harvey Nichols, the department store chain, became the latest troubled retailer to be snapped up by billionaire Mike Ashley's Frasers Group when it underwent a pre-pack administration.

(c) Sky News 2026: Poundland owner plots sale of discount chain a year after takeover