Modella Capital, the retail investor behind TGJones and Dealz in Poland, has emerged as a potential bidder for Poundland ahead of a formal sale process expected within weeks.
Modella is being asked whether it is interested in the British value retailer, according to Sky News, although it has not committed to making an offer.
The investor acquired TGJones, formerly known as WHSmith, earlier in 2026 and bought Dealz, the Polish chain that was formerly Poundland’s sister business, several months ago.
Gordon Brothers prepares Poundland auction
Gordon Brothers has brought in restructuring specialist Alvarez & Marsal to oversee Poundland’s auction, which is expected to attract private equity firms, turnaround funds, strategic buyers and other retail industry participants.
Poundland’s latest accounts show sales declined from around £1.8 billion to £1.6 billion in the year to September 2025, while its pre-tax loss widened to £85.2 million. The accounts cover the period in which Pepco Group sold Poundland to Gordon Brothers for a nominal £1 in June 2025, before the retailer underwent a court-backed restructuring.
For the year to September 2024, Poundland had posted a £79 million pre-tax loss, while revenue declined 2.5% to £1.8 billion.
In August 2025, a restructuring plan received High Court approval, shortly before the retailer was expected to run out of money. It provided for new funding of up to £60 million, alongside a £30 million overdraft facility and reductions to some store rents.
Nearly 150 shops subsequently closed and about 2,200 jobs were lost. Poundland now operates roughly 600 stores across the UK and Ireland, employing around 12,000 people, compared with approximately 800 locations and 14,200 employees before the reorganisation.
No reason has been given for Gordon Brothers considering a sale just over a year after taking control, although the firm has remained active elsewhere in UK retail.
Gordon Brothers recently joined the auction for Harvey Nichols, while in May, Gordon Brothers confirmed its acquisition of the British handbag brand Radleys. 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.
Poundland rebuilds its value offer
Poundland’s recovery plan has aimed to simplify its ranges and restore its position as a discounter. Its UK estate has adopted a clearer price architecture spanning £1 to £3, with around 60% of grocery products priced at £1.
The retailer is also rebuilding its PEP&CO clothing offer, which has reached around 450 stores. About 90% of the range is priced below £10; adult clothing has returned to in-house design under the PEP&CO brand.
Underlying like-for-like sales fell 2.9% during the Christmas quarter, although comparable store volumes increased 2%. First-quarter underlying earnings rose by £8.4 million to £17.3 million.
In January, Managing Director Barry Williams said Poundland was “on the right track” after nearing collapse. That month, the retailer completed its programme of large-scale closures, with further exits expected only when leases expire or are renegotiated.
Poundland strengthened its management team in July by appointing former Superdry and Marks & Spencer executive Shaun Wills as Chief Finance Officer. A formal auction is expected to begin within weeks.