Poundland sold to Gordon Brothers for £1

Pepco Group has announced that it has sold Poundland to investment firm Gordon Brothers for £1.

The deal will provide the discount retailer with £80m in financing to be used for restructuring and turnaround.

The business will continue to operate under the Poundland brand in the United Kingdom and under the Dealz brand in the Isle of Man and Republic of Ireland. Furthermore, current managing director Barry Williams will step up to chief executive and lead the company.

If the proposed restructuring is accepted by the High Court then Pepco Group is expected to retain a minority investment in the company.

Poundland currently employs around 16,000 colleagues across over 800 stores in primary locations across the United Kingdom, Isle of Man and Ireland.

All stores, colleagues, assets and liabilities of the Poundland business will move under Gordon Brothers’ ownership as part of the transaction.

Stephan 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.”

He added: “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.”