Gordon Brothers is reportedly weighing a sale of Poundland, just over a year after it acquired the UK discount retailer from Pepco Group for £1.
The US investment firm, which also owns LK Bennett and Radley, could be appointing advisers within days, according to Sky News. Prospective bidders could include turnaround funds, private equity firms, strategic buyers and other industry players.
There is no clear reason why Gordon Brothers would be motivated to sell the business now. A Poundland spokesperson told Sky News: “We’ve made very significant progress over the past year with a recovery plan that’s created simpler, better value for customers centred around thousands of items back at our iconic £1 price point.”
A trading update from the retailer is due in the coming days.
Poundland’s restructuring following Gordon Brother acquisition
Gordon Brothers acquired Poundland from Pepco Group in June 2025 after a period of weaker trading. The retailer had recorded a £79 million pre-tax loss for the year to September 2024, while revenue fell 2.5% to £1.8 billion.
In August 2025, the High Court approved Poundland’s restructuring plan, shortly before the business was expected to run out of money. The agreement provided for as much as £60 million in new funding, a £30 million overdraft facility and reductions to some store rents.
Following this, nearly 150 shops shut and about 2,200 jobs were lost. At the end of 2025, Poundland had 651 locations, down from around 800 before the reorganisation, while its workforce had decreased from 14,200 to about 12,000. It now runs roughly 600 stores across the UK and Ireland.
Poundland said in January that its large-scale closure programme had finished, with future exits expected to result from routine lease events.
The turnaround has focused on simplifying Poundland’s ranges and restoring its discount positioning. Around 60% of grocery products were priced at £1, while the retailer introduced clearer £1, £2 and £3 price points across its UK estate.
Poundland has also continued rebuilding its PEP&CO clothing range, now stocked in around 450 stores. About 90% of the range is priced below £10, while adult clothing has returned to in-house design and PEP&CO branding.
Underlying like-for-like sales for the retailer in the Christmas quarter dropped 2.9%, while comparable store volumes rose 2%. First-quarter underlying earnings increased by £8.4 million to £17.3 million.
In July, the retailer appointed former Superdry and Marks & Spencer executive Shaun Wills as Chief Finance Officer.
Gordon Brothers has recently pursued other UK retail opportunities, including an offer for luxury department store Harvey Nichols.
In May, Gordon Brothers confirmed its acquisition of the British handbag brand Radley, a deal that has resulted in the immediate redundancy of 42 employees. A few months earlier, in January, the US investment firm had acquired LK Bennett as part of a strategy to transition the business to an asset-light model.