UK discount retail chain Poundland is expected to close dozens of stores after it was sold to US investment company Gordon Brothers for £1.
Poundland has more than 800 stores around the UK and employs some 16,000 people. It was put up for sale by its now former owners Pepco Group due to “challenging trading conditions”.
After acquiring the discount chain for an ironic £1, Gordon Brothers pledged to invest up to £80 million to help turn the business around. However, a restructuring plan for Poundland is expected to involve closing a lot of stores, leaving thousands of jobs up in the air. The company also said it is exploring ways to slash its rent bill.
Poundland has struggled in recent years, even though times of financial strain in the economy tend to be favourable towards super-budget stores. Majorly discounted goods are capable of undercutting leadings grocers and win customers increasingly exposed to a cost-of-living crisis.
The British chain was bought by Polish-listed Pepco Group in 2016. In 2017, the Brexit era was ushered in, and the brand pledged to drop all of its products between 50p and £1. Items in its 825 stores have been prices in between those two points accordingly.
In 2024, the discounter recorded roughly €2 billion of sales – which included a like-for-like sales slump of 7.3 per cent during the Christmas trading period. This comes even though demand for competitors like Home Bargains, B&M and Poundstretcher have risen following the rampant inflation the UK has faced in recent years.
Gordon Brothers Group
Founded in 1903, the private investment firm that acquired Poundland – Gordon Brothers – rose to prominence with its 2009 purchase of Polaroid from bankruptcy and its 2020 acquisition of British fashion and home retailer Laura Ashley, later sold to retail giant Next. Known for its strategic investments and operational expertise, the firm has successfully repositioned numerous iconic brands for long-term growth.
Image: Wikicommons
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