Discount chain set to be sold as high street shops face shutdown threat

12 March 2025, 15:58

A bargain retailer with over 800 stores is set to be sold closing high-street stores across the country.

A significant number of Poundland stores may shut if the company is sold.

The chain have reportedly hired Tenseo, an advisory form, to manage the sale.

"As stated at our capital markets day on March 6, we are actively exploring separation options, including a potential sale, for the Poundland business," a spokesman for Pepco Group, parent company of Poundland, said to the Telegraph.

"We have started to work with advisers to support us with this process."

It comes as the Pepco group, a Polish company, said it was looking at "all strategic options" to separate itself from Poundland, seeking more profitable business is Europe.

Last year, the chain's profits fell by £641 million from January - September.

Poundland also revealed a slump in sales after their revenue fell by 9.3% from October - December last year.

Poundland's bosses blamed Reeve's hikes to employer National Insurance Contributions (NICs) and the national minimum wage increase, according to The Sun.

Chancellor Rachel Reeves announced she would raise employer's NICs from 13.8% to 15% in her autumn statement last year.

She also announced the NI threshold would reduce, with businesses paying contributions from £9,100 to £5,000.

Reeves has come under repeated criticism for her £40 billion tax raid in the autumn Budget.

Her £25 billion National Insurance hike for employers has prompted major warnings from business leaders, who have raised the alarm over plunging business confidence and fewer jobs.

Employers also face further bills hikes from April when the National Living wage rise by 6.7 per cent to £12.21 an hour.

Meanwhile, from April 2027, another Reeves' policy will force 31,200 families to pay inheritance tax for the first time.

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Chancellor Rachel Reeves has been blasted by the Tories as “out of her depth” after inflation figures jumped to 3%, nearly the highest level in nearly 10 months.

The figure, released on 19 February by the Office for National Statistics (ONS), marks a rise of 0.5%  in the 12 months to January 2025. The consumer prices index (CPI) stood at 2.5% in December.

This rate is higher than both Germany and France, with 2.8% and 1.8% levels respectively. It means inflation now sits above market and Bank of England expectations.

The Conservatives have blamed this on the Chancellor's tax raid in the Budget, which they warned is causing "misery for millions".

Shadow Chancellor Mel Stride said: “Today’s figures mean further pain for family finances – and it's thanks to the Labour Chancellor's record tax hikes and inflation busting pay rises.

“Labour were warned that their tax spending and borrowing spree would drive up inflation. It means higher prices in the shops, and interest rates staying higher for longer, causing mortgage misery for millions.

“This Chancellor is out of her depth, and we're all paying the price.”

Following the news inflation has risen, Chancellor of the Exchequer, Rachel Reeves, said she "knows that millions of families are struggling"

“Getting more money in people’s pockets is my number one mission," the Chancellor said.

"Since the election we’ve seen year on year wages after inflation growing at their fastest rate – worth an extra £1,000 a year on average – but I know that millions of families are still struggling to make ends meet.

"That’s why we’re going further and faster to deliver economic growth," she continued."By taking on the blockers to get Britain building again, investing to rebuild our roads, rail and energy infrastructure and ripping up unnecessary regulation, we will kickstart growth, secure well paid jobs and get more pounds in pockets.”

The Bank of England expects consumer price inflation to peak at 3.7% in the third quarter of the year. The figure is almost double the government's 2% target.

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This comes as clothing chain New Look is set to close 26 stores in the coming months, seeing around 350 people lose their jobs.

The high-street fashion brand’s Irish branch has entered liquidation following a recent High Court ruling, with a slew of its locations now set to close.

Liquidators have taken control of the company’s Irish stores, with sales taking place across almost all locations to move on remaining stock.

New Look said “sustained losses and challenging market conditions” prompted the decision to shutter the stores.

The retailer said: "New Look has undergone several changes to adapt to the current market, including marketing initiatives, store adaptations, and price range trials.

“However, following a strategic review of our Irish business, New Look Group concluded that it was no longer viable to continue trading in Ireland.

"Given the increasingly volatile trading conditions, we needed to expedite our existing plans, which included a review of our operations in the Republic of Ireland."