Fears for 200 branches of Poundland as whole chain to be sold 'this summer'
Pepco has announced all 818 branches are up for sale and there are fears a quarter of them will close
The parent firm of Poundland has said it expects to sell the UK discount chain by the end of September. Pepco Group, which has owned the brand since 2016, said it is still considering options for the "separation" of the 818-strong retail chain.
It is understood that a number of investment firms and private equity groups are among those to have tabled proposals to buy the business since it was put on the market earlier this year. Laura Ashley owner Gordon Brothers is reportedly among the favourites to strike a deal.
Last week, the Telegraph reported that up to 200 Poundland stores could face closure as part of a rescue sale.
On Thursday, Pepco said it is looking to offload the brand amid a wider shift away from food and drinks, with a deal expected before the end of its financial year in September. It came as the group reported weak Poundland sales over the past half-year, cutting the brand's trading guidance for the year as a result.
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."
Poundland 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.
Poundland is now due to deliver earnings of between 0 and 20 million euros (£16.9 million) compared with previous guidance of 50 million euros and 70 million euros. The wider Poland-based Pepco Group saw total revenues grow by 4.3% to 3.34 billion euros (£2.82 billion) for the half-year.
However, like-for-like sales were marginally lower as growth in its Pepco brand was offset by the struggling Poundland operation.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Glasgow Times
20 minutes ago
- Glasgow Times
Pret A Manger ‘considering stake sale ahead of possible flotation'
Luxembourg-based JAB Holding – which bought Pret for £1.5 billion in 2018 – told the Financial Times that while it was not 'currently' considering a stake sale in Pret, it could look at the move with an initial public offering (IPO) in its sights. 'As we move closer to a potential IPO, we may evaluate bringing on a pre-IPO investor,' it told the FT. It is thought to mark the first time Pret has publicly confirmed IPO plans for Pret. JAB – which also owns Krispy Kreme and Keurig Dr Pepper – announced last month it had hired hospitality industry stalwart Jose Cil as chairman of Pret's board. Mr Cil was most recently chief executive of Burger King owner Restaurant Brands International, which also owns chains including Popeyes. JAB has been contacted for comment. Pret recently announced it was dropping plans for a doubling of its current £5 monthly subscription for up to five coffees a day as it looks to retain customers against a difficult consumer spending backdrop. The group had previously told subscribers that their subscription would increase to £10 a month from March 31, when a '50% off' deal ended. It followed Pret overhauling its £360-a-year subscription in July last year in favour of 50% off up to five coffees a day for £10 a month. The chain also removed a 20% discount on food for subscribers to end dual pricing – 'something we never really got comfortable with', it said at the time. Under the old deal that lasted for almost four years, Club Pret membership offered up to five barista-made drinks daily for a monthly fee of £30. Pret is headed up by chief executive Pano Christou, who was promoted to the top job in 2019. The firm opened its first shop in London in 1986, where the company remains headquartered. It now has 700 shops worldwide with around 12,500 employees across 21 markets.
Western Telegraph
38 minutes ago
- Western Telegraph
Pret A Manger ‘considering stake sale ahead of possible flotation'
Luxembourg-based JAB Holding – which bought Pret for £1.5 billion in 2018 – told the Financial Times that while it was not 'currently' considering a stake sale in Pret, it could look at the move with an initial public offering (IPO) in its sights. 'As we move closer to a potential IPO, we may evaluate bringing on a pre-IPO investor,' it told the FT. It is thought to mark the first time Pret has publicly confirmed IPO plans for Pret. JAB – which also owns Krispy Kreme and Keurig Dr Pepper – announced last month it had hired hospitality industry stalwart Jose Cil as chairman of Pret's board. Mr Cil was most recently chief executive of Burger King owner Restaurant Brands International, which also owns chains including Popeyes. JAB has been contacted for comment. Pret recently announced it was dropping plans for a doubling of its current £5 monthly subscription for up to five coffees a day as it looks to retain customers against a difficult consumer spending backdrop. The group had previously told subscribers that their subscription would increase to £10 a month from March 31, when a '50% off' deal ended. It followed Pret overhauling its £360-a-year subscription in July last year in favour of 50% off up to five coffees a day for £10 a month. The chain also removed a 20% discount on food for subscribers to end dual pricing – 'something we never really got comfortable with', it said at the time. Under the old deal that lasted for almost four years, Club Pret membership offered up to five barista-made drinks daily for a monthly fee of £30. Pret is headed up by chief executive Pano Christou, who was promoted to the top job in 2019. The firm opened its first shop in London in 1986, where the company remains headquartered. It now has 700 shops worldwide with around 12,500 employees across 21 markets.
Evening Standard
an hour ago
- Evening Standard
Pret A Manger ‘considering stake sale ahead of possible flotation'
Luxembourg-based JAB Holding – which bought Pret for £1.5 billion in 2018 – told the Financial Times that while it was not 'currently' considering a stake sale in Pret, it could look at the move with an initial public offering (IPO) in its sights.
