Poundland issues update on sale of the business 'as 200 stores could close'
The latest reports on Poundland suggest a number of investment firms and private equity groups are interested in buying the business
The owner of Poundland has said it expects the sale of the discount chain to complete by September.
In a financial update this week, parent company Pepco Group told investors that the company "continues to actively explore separation options for Poundland business with an exit expected by end of FY25".
This indicates that Poundland expects the deal to be done by the end of its current financial year, which closes in September. Reports suggest a number of investment firms and private equity groups are interested in buying the business.
Laura Ashley owner Gordon Brothers is supposedly the frontrunner to strike a deal. Last week, the Telegraph reported that up to 200 Poundland stores could face closure as part of a rescue sale.
It was revealed this week that Poundland revenues dropped by 6.5% to €985million (£830million) 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. Poundland is now due to deliver earnings of between 0 and €20million (£16.9 million) compared with previous guidance of €50million and €70million.
The wider Poland-based Pepco Group saw total revenues grow by 4.3% to €3.34billion (£2.82billion) for the half-year.
Stephan Borchert, chief executive of Pepco, said: 'At Poundland, trading remains challenging, which is reflected in a profit outturn below expectations for H1 and a weaker outlook for the full year.
'Barry Williams, who was reappointed as Poundland managing director in March 2025, and his team are actively driving a recovery plan to help turn around the business by refocusing on its traditional core strengths.'
Pepco Group first confirmed it was going to sell Poundland in an update this March. The firm had already hired Alix Partners to carry out a strategic review of the brand at the start of this year.
A spokesperson from Pepco Group told The Mirror: 'As stated at our capital markets day on March 6, we are actively exploring separation options, including a potential sale, for the Poundland business. We have started to work with advisers to support us with this process.'
The company blamed a 'challenging' UK retail landscape, along with changes announced in the Budget, including higher National Insurance contributions for employers and an increase in the minimum wage.
Poundland has more than 820 stores and employs more than 16,000 people across the UK, as well as in Ireland, where it is known as Dealz.
It comes as Poundland is set to close another two stores. Its branch in Brackla, Wales, will close on May 24, and its Chiswick High Road branch will shut for good on May 28. The discount chain shit its Copdock Mill Interchange site in Ipswich on May 20.
This followed its Clapham Poundland branch in London closing on May 2, while its Liverpool Belle Valle shopping centre store closed on May 6, followed by its store in St George's Centre in Gateshead, Kent, which pulled down the shutters on May 8.
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