Poundland sale: Owners bid to sell discount retailer before Christmas

Owners Gordon Brothers appointed advisors Alvarez & Marsal to explore a potential sale of the chain

The owners of Poundland are scrambling to secure a buyer for the discount retailer ahead of the crucial Christmas trading period, having already fielded interest from potential suitors.

Gordon Brothers, which acquired Poundland just a year ago, has appointed advisors Alvarez & Marsal (A&M) to gauge interest in the business after a number of parties approached the Boston-based investment firm regarding a possible takeover.

A&M has been instructed to present Gordon Brothers with a shortlist of formal bids by the beginning of October, as the all-important festive trading season gets under way, according to City AM.

The advisors will be canvassing financial investors and major retailers in the coming weeks to assess their appetite for a potential acquisition.

The accelerated process has been designed to secure Poundland’s future at the earliest opportunity, with the aim of limiting any disruption during the retailer’s busiest time of year, as reported by City AM.

Gordon Brothers anticipates that the sale of Poundland will generate considerable interest from across the retail sector, it is understood. Sky News was first to report the deal’s timeline.

The discount chain has endured a turbulent few years, which its current owners have attributed to a tough economic climate and a wide-ranging restructuring programme. Poundland plunged to an £85m pre-tax loss in the year to September, almost doubling its £45m deficit from the previous year, while group sales fell 12 per cent to £1.5bn.

The discount retailer cut its workforce by 11 per cent to 14,417 and shuttered nearly 200 stores during the same period.

The company’s directors attributed the deepening losses to “difficult trading conditions” and a “significant programme of restructuring”.

The retailer described 2025 as a “reset moment,” adding: “This led to a challenging set of numbers seen in these statutory accounts, but it has positioned the company as well as it could be in terms of its turnaround.”

New owner Gordon Brothers, however, insists Poundland has turned a corner since acquiring the struggling retailer for just £1 in July last year.

The group has recently opened its first new store in two years and has been working to restore its iconic £1 price point across its grocery range.

Barry Williams, managing director of Poundland, said: “Rebuilding trust with customers takes time, but we’re making very significant progress as we deliver the ranges and price simplicity they demand of us.”