Pepco offloads Poundland: brand sold at face value, 100 stores at risk of closure

12 June 2025 , 14:37

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Poundland’s parent company has announced it has sold the brand off for a ‘nominal’ price.

Pepco Group has sold off Poundland to investment firm Gordon Brothers so the group can focus on its Pepco clothing business instead.

Gordon Brothers is spending £80million on its plans to turn Poundland’s fortunes around – but hundreds of shops could close and thousands of jobs are at risk, with some closures already announced.

Pepco Group previously said it saw a drop in revenue of more than £57million last year.

Stephen Borchert, Pepco Group CEO, said: ‘The agreed sale of Poundland marks an important milestone in our strategic plan to move away from FMCG and focus predominantly on Pepco, our higher margin clothing and general merchandise business.

‘As set out during our Capital Markets Day in March 2025, this transaction will strongly support our accelerated value creation programme by simplifying the Group and focusing on our successful Pepco business.

‘I am confident that Pepco has the right foundations to be one of Europe’s most successful discount retailers, delivering customer satisfaction, profitable growth and shareholder value.

‘Poundland remains a key player in UK discount retail, with millions of customers annually and a well-loved brand and proposition.

‘We want to sincerely thank all the Poundland team for their ongoing commitment and contribution to the Group and wish Barry Williams and his team all the best for the future.’

Poundland currently employs around 16,000 people at more than 800 shops.

It’s thought the brand will close about 100 shops and try to negotiate rent cuts at several of its remaining branches.

The brand expanded its operations in 2023 after buying 71 branches of collapsed firm Wilko, relaunching them under the Poundland name.

Those former Wilko employees who were put at risk of redundancy two years ago will now be feeling fearful for their job once again.

Barry Williams, who returned as CEO in March, will remain in charge of Poundland under its new ownership.

He said: ‘Poundland is a UK and Ireland retailer of real significance, serving 20million customers each year with a much-loved brand.

‘Although recent trading has been challenging, we have built a turnaround plan with a simplified and more focused Poundland at its heart, as we aim to deliver the amazing value our customers expect.

‘In due course we’ll share more details of the proposed restructure and turnaround plan.’

Mark Newton-Jones, head of Gordon Brothers in Europe, added: ‘We are delighted to provide Barry Williams and his management team with the financing to support the substantial turnaround of this iconic retailer.

‘We believe Poundland is an essential business to UK consumers and plays an important role on the high street.’

Now the sale has gone ahead, Pepco Group, Gordon Brothers and Poundland are set to put together a restructuring plan, which will need to be approved by the High Court.