Poundland Sold for £1; 100 Stores Face Closure

Poundland, the UK discount retailer, has been sold for £1 to US investment firm Gordon Brothers. The sale includes a proposed restructuring plan that could lead to the closure of up to 100 of its 825 stores, affecting approximately 16,000 employees. This move comes as Poundland struggles with declining sales and increased competition from other discount retailers.
The sale follows a 6.5% drop in sales over six months, attributed to Pepco's decision to align Poundland’s product offerings with its continental Europe operations. Gordon Brothers has committed up to £80 million to support a turnaround, with Barry Williams continuing as managing director. Pepco will now focus on its more profitable Pepco brand.
Despite the sale, Poundland remains a recognizable brand with €2 billion in annual sales but faces a challenging UK retail environment.