Poundland sold for £1
Bargain retailer Poundland has been sold by its parent company Pepco for a nominal sum of £1 to US investment firm Gordon Brothers International.
The transaction marks the end of an era for the beleaguered retailer, which has continued to face profitability issues in recent months.
In a statement on Thursday 12 June, Pepco Group said it has completed the sale of its Poundland business to Gordon Brothers as part of its strategy to simplify the group’s structure and drive shareholder value.
“The shares in Poundland have been sold to Gordon Brothers for nominal consideration, with Pepco’s secured loan of £30 millionand certain unsecured loans remaining in place between Pepco Group and Poundland, as well as an overdraft of up to £30 million to be put in place between Pepco Group and Poundland upon completion of the Proposed Restructuring in support of the Transaction,” the group said.
By deconsolidating Poundland from the group, the transaction is expected to improve the revenue growth, drive higher profitability and margins, with stronger cash generation, highlighting a clear focus on driving shareholder value, it said.
It added that the transaction will create a cleaner, more agile business, enabling the group to focus on expanding its core Pepco brand, which generates the vast majority of its earnings and the highest returns on capital.
“The agreed sale of Poundland marks an important milestone in our strategic plan to move away from FMCG and focus predominantly on Pepco, our higher margin clothing and general merchandise business,” said Stephan Borchert, Pepco Group CEO.
“As set out during our Capital Markets Day in March 2025, this transaction will strongly support our accelerated value creation programme by simplifying the Group and focusing on our successful Pepco business. I am confident that Pepco has the right foundations to be one of Europe’s most successful discount retailers, delivering customer satisfaction, profitable growth and shareholder value.”
He noted that Poundland remains a key player in UK discount retail, with millions of customers annually and a well-loved brand and proposition.
“We want to sincerely thank all the Poundland team for their ongoing commitment and contribution to the Group and wish Barry Williams and his team all the best for the future.”
