Poundland’s owner, Gordon Brothers, has appointed Alvarez & Marsal to advise on a potential sale of the discount chain, just 14 months after acquiring it for a nominal sum of £1. The move comes after Gordon Brothers reportedly received unsolicited enquiries about buying the business.
Gordon Brothers bought Poundland from Pepco Group in June last year, leading to a restructure involving mass store closures. About 150 stores had closed by January this year, leaving around 650 stores operational.
The retailer also closed two distribution centres and shed 2,200 jobs, leaving it with 12,000 employees. A recent trading update revealed like-for-like sales fell by 1.5% over the nine months to 30 June 2026.
Despite the decline in like-for-like value sales, Poundland reported a 5% rise in like-for-like volume sales over the first three quarters of its current financial year. However, price drops meant this did not translate to value sales growth.
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The 1.5% drop in like-for-like value sales is an improvement on the 2.9% decline in the quarter to 28 December 2025. Poundland said EBITDA was broadly in line with expectations and more than £70m ahead of the same period a year earlier.
Poundland Managing Director Barry Williams said the business is “getting back on track” as it turns around the business at pace. He attributed the progress to the hard work of colleagues in every store, distribution centre, and customer service centre.
Regarding the potential sale, Williams stated that the process started due to unsolicited enquiries about acquiring the business. He said Gordon Brothers wants to have an open process and see how genuine these offers are before making a decision on whether to sell.
A Poundland spokesman did not provide a comment on reports advisors have been appointed for a sale of the business. Gordon Brothers and Alvarez & Marsal were also approached for comment.
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Bally Auluk, national officer at union Usdaw, expressed disappointment that the new owners are considering the sale of the Poundland business. He said it is concerning that the business did not brief staff or the union ahead of these stories emerging in the media.
Usdaw is now seeking urgent talks with the business to seek clarity on their future intentions. In the meantime, the union is providing its members with the support and advice they need during this difficult time.
The situation unfolding will have significant implications for Poundland’s employees and the communities they serve. The high street is already under pressure, and the fate of Poundland will be closely watched by retailers and consumers alike.
Poundland’s future remains uncertain, but one thing is clear: the company’s employees and customers are eager for stability and clarity on what the future holds. With Alvarez & Marsal advising on the potential sale, the next few months will be important in determining the direction of the business, as they will help shape the course of the company’s future.