Poundland 'to close 100 UK stores' after being sold for £1
The discount chain, known for primarily selling products for £1, had been put on the market earlier this year after a sharp downturn in trading and has now been bought by investment firm Gordon Brothers.
Poland-based Pepco Group, which has owned Poundland since 2016, said on Thursday that it completed the sale of the business for a 'nominal' fee. Sources close to the process have said this was £1.
Poundland's more than 800 stores 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 of the shake-up will be sent out to company creditors in the coming days.
The company is expected to seek around 100 store closures and a raft of rent reductions from landlords as part of the process.
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% 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.
Currently, Poundland has several stores across Glasgow, including one on Argyle Street and another on Sauchiehall Street.
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 [Gordon Brothers chief executive] Barry Williams and his team all the best for the future.'
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