Poundland is set to be sold 'for a pound' as 200 stores face closure with thousands of jobs at risk

17 May 2025, 15:32

Former Wilko store in Maidenhead High Street, Berkshire which reopened as a Poundland a few months ago is closing down. Picture: Alamy

By Rose Morelli

Thousands of jobs could be cut as part of a rescue deal for the trouble Poundland chain.

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The high street brand currently has 850 stores which employ over 16,000 people across the UK - but hundreds of stores could close even if a buyer does secure a deal to save the chain.

Parent company Pepco has reportedly agreed a deal to sell the Poundland brand in the near future - but an “increasingly difficult” landscape may necessitate a very low price.

It’s thought that the amount of work required to turn the brand back into a profitable entity would render any sales price as nominal - with one source close to the deal saying it would have to be “effectively a pound”.

It was reported in January that Poundland’s like-for-like sales fell a whopping 7.3% in the months leading up to December 2024.

The drop in sales was so severe that Pepco said they were examining “all strategic options” to potentially separate Poundland from the wider group.

A Poundland store in Uxbridge in the London Borough of Hillingdon. Picture: Alamy

“Poundland is a strong brand that serves millions of customers every week,” Pepco said at the time.

“[They] had around two billion euros (£1.67 billion) in annual turnover in 2024, but are also operating in an increasingly challenging UK retail landscape that is only intensifying.”

Pepco also said that Budget changes enacted in April, such as a national insurance rise on employers, were going to “add further pressure” on the brand.

Gordon Brothers, the former owner of Laura Ashley, has emerged as one of the frontrunners to buy the business.

Modella Capital have also reportedly placed a bid, after their recent purchase of former giant WH Smith’s high street division.

Alteri, owner of Benson’s for Beds and Hilco Capital who own Lakeland have also reportedly expressed interest.