Gordon Brothers is reportedly considering selling Poundland, a little over a year after acquiring the British discount retailer from Pepco Group for £1, according to information reported by Sky News. The American investment fund could appoint advisers in the coming days, still according to Sky News.

A turnaround launched after heavy restructuring

L'enseigne had recorded a pre-tax loss of £79 million for the financial year ending September 2024. In August 2025, the High Court had approved a restructuring plan as Poundland was on the verge of running out of cash. That agreement provided for up to £60 million of new financing and a £30 million overdraft facility, in exchange for rent reductions on certain stores.

The restructuring came at a significant social cost: nearly 150 stores closed and around 2,200 jobs were cut. By the end of 2025, Poundland had 651 stores, down from around 800 before the reorganisation, while its headcount fell from 14,200 to around 12,000 employees. L'enseigne now operates around 600 stores in the Royaume-Uni and Irlande. Poundland had said in January that its large-scale closure programme was complete, with future exits to result from routine lease events.

Improving commercial indicators

Around 60% of grocery products remain priced at £1, and l'enseigne has introduced clearer price tiers at £1, £2 and £3 across its entire UK network. The PEP&CO clothing range, which has returned to in-house design and its own brand, is now available in around 450 stores, with nearly 90% of the collection priced under £10.

On the financial side, comparable in-store volumes rose 2% in the Noël quarter, despite a 2.9% decline in underlying comparable sales. Underlying first-quarter profit rose by £8.4 million, to £17.3 million. In July, Poundland had appointed Shaun Wills, a former Superdry and Marks & Spencer executive, as chief financial officer.

A Poundland spokesperson told Sky News: « Nous avons réalisé des progrès très significatifs au cours de l'année écoulée, avec un plan de redressement qui a créé une offre plus simple et plus avantageuse pour les clients, recentrée sur des milliers d'articles revenus à notre prix emblématique de £1. »

Gordon Brothers steps up dealmaking in UK retail

The fund, which also owns LK Bennett and Radley, has recently made an offer for the luxury department store Harvey Nichols. In May, it had confirmed the acquisition of the British leather goods brand Radley, a deal that led to the immediate redundancy of 42 employees. In January, Gordon Brothers had acquired LK Bennett as part of a strategy shifting toward an asset-light model.

According to the reported information, potential buyers for Poundland could include turnaround funds, private equity firms, strategic players and other sector operators. A trading update from the retailer is expected in the coming days.