UK DIY News
Gordon Brothers Understood to be Planning Sale of Poundland
Poundland is reportedly up for sale for the second time in less than two years, according to reports by Sky News.
In June 2025, Pepco Group announced that it had sold the discount retail chain to the private equity company Gordon Brothers, for a nominal sum. Shortly afterwards, the company announced a turnaround plan which included a restructure, 'intended to deliver a financially sustainable operating model for the business after an extended period of under-performance.'
August 2025 saw Poundland receive High Court approval for the restructure, saving the business from entering administration. The closure of 68 stores was announced, along with plans to negotiate rent reductions on others. The retailer confirmed it would no longer sell frozen food and its chilled food offer would also be reduced, resulting in the planned closure of its frozen and digital distribution centre at Darton, South Yorkshire, and its national distribution centre at Springvale in Bilston, West Midlands in early 2026. Delivery volumes from a streamlined Poundland would be absorbed into existing distribution centres in Wigan and Harlow.
Furthermore, Poundland said it would reduce its digital presence, converting Poundland.co.uk from a transactional website to a brand website, along with the closure of its Perks loyalty app, allowing the business to focus on its instore offer for customers.
An update from the business in January 2026 revealed that the store consolidation programme had come to a close, ending 2025 with 651 locations, compared to c. 800 prior to the reorganisation. Poundland stated that any future closures would be a consequence of standard business-as-usual lease events expected at any retailer with a large store network. Store numbers currently stand at around 600.
Poundland explained that the restructure had resulted in a 'simpler and better value customer proposition', and a re-organisation had created 'a simpler organisation with lower central costs'. Consolidation of store and distribution networks, and re-organisation at its Walsall customer service centre saw the business reduce overall headcount from 14,200 to around 12,000 on 28 December 2025 - the end of Q1 FY26.
A trading update revealed that Poundland delivered an EBITDA of £17.3m in Q1 2026, in line with the budget shared with its suppliers in September and £8.4m ahead of Q1 2025, along with the delivery of an additional £10m in cost savings over and above the initiatives already embedded into its Q1 budget.
Gordon Brothers is now understood to be lining up suiters for the retailer, the sale of which is expected to begin in the autumn, run by Alvarez & Marsal.
Source : Insight DIY
Image : nrqemi / shutterstock / 1223281819
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