Gordon Brothers is considering separate sales of Poundland and its Irish sister business Dealz as it aims to finalise a deal ahead of Christmas.
The restructuring investor initially explored selling the businesses as one package, but interest in Dealz expressed by Irish retail businesses and private investors has prompted it to reconsider the structure of the auction, according to reports by City AM.
Reportedly a joint sale remains an option and no transaction has been agreed so far. Advisors at Alvarez & Marsal, which have been appointed by Gordon Brothers to oversee the process, are expected to prepare a list of formal bids by the end of September.
Poundland has reportedly also received approaches from several prominent retailers and asset managers, while another option that has been previously mentioned is a buyout by the discount retailer’s current leadership.
Poundland operates around 600 stores in the UK, while Dealz has 70 locations in the Republic of Ireland. The interest in Dealz could allow Gordon Brothers to market the Irish chain separately rather than require a Poundland buyer to acquire both operations.
Potential buyers assess Poundland
Fortress Investment Group, the New York-based owner of Poundstretcher, was reported earlier in September to be in early talks over Poundland. Those discussions were at an initial stage and there was no certainty that Fortress would submit an offer.
Modella Capital, which owns TGJones and Hobbycraft, has also previously been approached about its interest in Poundland. The investment firm completed its acquisition of the separate Polish Dealz operation from Pepco Group in July 2026.
Gordon Brothers launched the Poundland auction in early September, just over a year after acquiring Poundland and Irish Dealz from Pepco Group for a nominal £1. Gordon Brothers also made as much as £80 million available to help fund the restructuring and turnaround programme.
The subsequent restructuring included nearly 150 store closures and around 2,200 job losses. Poundland also simplified its grocery pricing around £1, £2 and £3 price points, while rebuilding its PEP&CO clothing offer.
Combined business returns to growth
The possible split comes as Gordon Brothers reports improved trading across the combined Poundland and Dealz business. Like-for-like sales grew by 3.3% on an unadjusted basis during the fourth quarter of FY26, rising to 6.4% on an adjusted basis.
Gordon Brothers linked FMCG performance to the return to simpler pricing. General merchandise was helping drive growth too, while clothing was expected to add to it when its autumn and winter ranges reached stores.
The owner expects EBITDA to improve by around £80 million against the previous year, although it did not disclose an absolute earnings forecast.
Poundland CFO Shaun Wills, who joined in July, said: “The fundamentals of this business are strong and it’s clear that the simplification strategy is starting to deliver positive and sustainable results.”
The latest published accounts cover the year ending September 2025. Over that period, revenue dropped from around £1.8 billion to £1.6 billion, while the pre-tax loss increased from £79 million to £85.2 million.