Gordon Brothers snaps up Poundland, to inject 80 million pounds into turnaround
Restructuring and investment firm Gordon Brothers has emerged as the buyer of Poundland. As a result, the British budget retailer will receive an 80 million pound financing boost to back a 'Proposed Restructuring', agreed on by all three parties, including former owner Pepco Group. Details on this plan are expected to be shared by Poundland in 'due course'.
In a press release, Gordon Brothers said the financing would be used to support Poundland's 'go-forward strategy', currently led by managing director Barry Williams. In a statement, Williams welcomed Gordron Brothers as Poundland focuses on returning the business to 'its core heritage category strengths'. He continued: 'We look forward to working with our supplier base to ensure we continue providing exceptional value to budget-conscious consumers in the UK."
Williams, who returned to the MD role earlier this year, will continue to lead the business under its new ownership. Pepco is anticipated to obtain a minority investment interest in Poundland, subject to the proposed restructuring of the retailer, which has been sanctioned by the High Court in England. Gordon Brothers will, in its place, obtain the ownership of all Poundland stores, its 16,000 colleagues, assets and liabilities. Court-sanctioned proposed restructuring to take effect
In a separate press release, Pepco, which also owns European discount chain Dealz, said the sale reflected its own 'strategy to simplify the group's structure and drive shareholder value', as the retailer had been weighing on its financials over the past year. Pepco said the transaction will improve group revenue growth, profitability and margins. In the latest financial year, Poundland had contributed 33 percent to Pepco's revenues, yet just 5 percent of its EBITDA.
The shares in Poundland have been sold to Golden Brothers for 'nominal consideration', while Pepco's secured loan of 30 million pounds and other unsecured loans remain in place between the company and Poundland. An overdraft of up to 30 million pounds is to further be put in place between the two counterparts upon completion of a proposed restructuring, supporting the transaction.
Gordon Brothers has been involved in the turnaround or restructuring of a number of fashion brands, including Laura Ashley, Orsay and Bench. The firm provides both short- and long-term capital to those undergoing transformation, while further providing expertise to management teams leading such strategies.
At Poundland, which currently operates around 800 stores in the UK, business had remained challenging into the first quarter of the current financial year, according to Pepco CEO, Stephan Borchert. As such, the group lowered its EBITDA forecast for the chain from 50 to 70 million euros to around 0 to 20 million euros. Pepco cited difficult trading conditions that were further exacerbated by the sales of old stock and product availability issues as core causes.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Rhyl Journal
32 minutes ago
- Rhyl Journal
100,000 electric vehicle charging points to be installed with £381m funding
The cash aims to help the uptake of electric cars among motorists who do not have their own driveways and charging points. The new charging points come on top of 80,000 already installed publicly across the UK, and tens of thousand more installed privately. Transport minister Lilian Greenwood said: 'This Government is powering up the EV revolution by rolling out a charge point every 29 minutes, and our support to roll out over 100,000 local charge points in England shows we're committed to making even more progress. 'We're delivering our Plan for Change by investing over £4 billion to support drivers to make the switch, while backing British car makers through international trade deals – creating jobs, boosting investment and securing our future.' The money comes from the Government's Local Electric Vehicle Infrastructure fund, which helps councils to instal new EV charging points. Meanwhile, in a sign of growing market confidence in EVs, London-based firm Believ has secured £300 million to roll out charging points across the UK.
Daily Mirror
44 minutes ago
- Daily Mirror
Leaked FSG text speaks volumes about Liverpool's Florian Wirtz transfer saga
As Liverpool look set to eclipse their club record transfer fee to sign Florian Wirtz from Bayer Leverkusen, many fans may remember the leaked text FSG sent to Jurgen Klopp With Liverpool on the verge of shattering their record transfer fee to sign Florian Wirtz, supporters may remember a leaked text from Fenway Sports Group. The Reds recently submitted a bid of £100milllion plus £14m of add-ons to Bayer Leverkusen, and while negotiations are still ongoing, they remain confident of wrapping up a deal. The Merseysiders are doing all they can to bring in the 22-year-old Germany international. And his arrival would dwarf their previous transfer record, which saw them spend £75m on Virgil van Dijk in the 2018 January transfer window. Wirtz is widely admired around Europe and was heavily linked with Manchester City and Bayern Munich. His likely arrival is a statement of intent from owners FSG, who were often reluctant to spent £100m in a single transfer window, let alone on one player. Not long ago, the club's fanbase were repeatedly accusing FSG of being too scared to break the bank to sign top-class players. The seemingly imminent arrival of Wirtz is a clear sign that the purse strings are no longer as tight. It is a huge boost to Liverpool fans who were often frustrated by the likes of fierce rivals Manchester City, Manchester United and Chelsea comfortably out-spending them. In his early years at the club, former manager Jurgen Klopp defended the ownership in press conferences and interviews. But behind the scenes, the German was making it clear that extra investment in the squad was vital if they wanted to lift the big trophies. When Klopp arrived at Liverpool, the Reds were in 10th place and had an ageing squad. Unhappy with the players at his disposal, Klopp received an apologetic text from the FSG bosses. In 2021, Klopp revealed: "At the beginning I received a message from the US saying, 'Sorry for the squad we've given you.' But all was good I replied, it just needs time.' Two years after revealing that text, Klopp watched his Liverpool side be convincingly beaten 5-2 at home by Real Madrid. It was the kind of chastening defeat which prompts action in the next transfer window. The previous month, Klopp publicly warned that Liverpool will need to be more aggressive in the transfer window or they will fall behind their Premier League and European rivals. He said: "I believe in coaching, I believe in developing, I believe in team-building and using those things 100%. "But meanwhile in the world out there the managers are really good. There are so many good managers out there it's crazy. So they believe in that as well, and if they start really properly spending and do those things as well, then you cannot not spend or you will have a little bit of a problem." In Klopp's final summer transfer window they fully took on Klopp's advice, as they rebuilt their midfield by signing Dominik Szoboszlai, Alexis Mac Allister, Ryan Gravenberch and Wataru Endo for a combined £155m. After Klopp walked away, many were surprised that Arne Slot was only able to sign Federico Chiesa in his first two transfer windows. But after winning the Premier League, FSG have shown the kind of spending intent usually seen by City, United and Chelsea. The way in which they have quickly moved for Wirtz highlights FSG's proactiveness, and that they are no longer afraid to break the bank to sign a potential game-changer. Full-back Jeremie Frimpong has already arrived this summer for £29.5m, while £45m Bournemouth left-back Milos Kerkez looks likely to arrive too, so Liverpool are clearly looking to build on their title triumph from Slot's first season. And it's a stark contract from the text message they left for Klopp all those years ago.
Wales Online
an hour ago
- Wales Online
DWP warns people they could face fines or court if they don't report these 16 things
DWP warns people they could face fines or court if they don't report these 16 things The Department for Work and Pensions (DWP) has certain rules for those who claim universal credit, particularly around changes in circumstances The Department for Work and Pensions (DWP) has outlined specific rules for anyone claiming universal credit (library image of people walking in Swanse) (Image: John Myers ) Benefit claimants are being urged to stay vigilant of a raft of changes they must report to avoid penalties or court action. The Department for Work and Pensions (DWP) has outlined specific rules for universal credit recipients. More than six million people in the UK on low incomes receive the benefit, but many are unaware of the obligations to inform the department of certain changes. Failure to do so, or providing incorrect information, could lead to fines or legal proceedings. Particularly relevant for those planning holidays this summer, it's crucial to understand what needs to be communicated if you have travel plans. Why should I notify the DWP about changes in my situation? The DWP insists that reporting changes in circumstances is critical to ensure claimants receive the correct payment each month, as benefits are calculated based on individual situations. For money-saving tips, sign up to our Money newsletter here These updates must be reported "as soon as they happen" as delays "may mean you receive too much money and will have to make a repayment". "Changes in your circumstances can affect how much you're paid for your whole assessment period – not just from the date you report them," states DWP guidance. The government website further warns: "You could be taken to court or have to pay a penalty if you give wrong information or do not report a change in your circumstances." Article continues below The changes you need to inform the department of are: securing a job ending a job having a child moving in with your partner beginning to care for a child starting to look after a disabled person changing your mobile number updating your email address relocating to a new address altering your bank details your rent increasing or decreasing changes to your health condition becoming too ill to work or meet your work coach changes to your earnings (only if you're self-employed) changes to your savings, investments, and the amount of money you have changes to your immigration status if you're not a British citizen If you travel abroad, you can continue to receive universal credit for one month. You must be eligible for universal credit when you're going abroad, remain eligible for it while you're abroad, and also inform your work coach that you're leaving. Article continues below If a close relative passes away while you're abroad and it would not be reasonable for you to return to the UK, you can receive universal credit for one more month. You cannot receive universal credit if you're moving abroad permanently and you cannot apply for it if you're already abroad. How do I report changes? You can report a change of circumstances through your universal credit account on Find out everything you need to know about doing this here.
