Business with atria Watford branch expected to shut 100 stores
Poundland is set to shut dozens of stores after being sold for £1 to investment firm Gordon Brothers.
The discount chain, which moved its Watford store from the high street to atria Watford in 2023, had been put on the market earlier this year after a sharp downturn in trading.
Poland-based Pepco Group, which has owned Poundland since 2016, said this morning (June 12) that it completed the sale of the business for a 'nominal' fee. Sources close to the process have said this was £1.
Poundland logo. (Image: Mike Egerton/PA) Poundland's more-than-800 stores, also including locations in Borehamwood and Hemel Hempstead, and roughly 16,000 employees will be transferred to the ownership of Gordon Brothers, which owns brands including Laura Ashley, as a result.
However, as part of the deal, Poundland is set to undergo a restructuring plan, which will go through the high court. Poundland said the details will be communicated 'in due course'.
It is understood that full details will be sent to creditors in the coming days, with the company expected to seek around 100 store closures and a raft of rent reductions from landlords as part of the process.
Atria Watford will change back to the Harlequin name this summer. (Image: Atria Watford) As part of the restructuring plan, Pepco is set to retain a minority stake in Poundland.
Last month, Poundland reported that revenues dropped by 6.5 per cent to 985 million euros (£830 million) for the six months to March, compared with a year earlier.
The brand suffered 'challenges across all categories' and had 18 net store closures over the period.
Pepco said the deal will help it shift away from food and drinks, improve its revenue growth and boost its profitability.
Former McDonalds and Poundland among High Street units on market Poundland confirmed for former atria Watford John Lewis unit Watford Poundland unit marketed ahead of closure tomorrow
Stephan Borchert, Pepco Group chief executive, said: 'This transaction will strongly support our accelerated value creation programme by simplifying the group and focusing on our successful Pepco business.
'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.'
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