Poundland shuts Welsh store and ‘200 more' could soon follow
Poundland shuts Welsh store and '200 more' could soon follow
Poundland owner Pepco Group has given an update on the sale of the discount chain, as the firm revealed it has suffered a half-year loss amid a 'challenging' UK retail landscape
Poundland is in the process of being sold (generic image)
(Image: Getty Images )
A popular shop has closed in Wales and up to 200 more branches across the UK could follow. Poundland at Brackla shopping centre in Bridgend shut on May 24, and is one of several branches to have announced its closure this month.
Meanwhile its parent company Pepco Group is in the process of selling the discount chain, which is estimated to be complete by September.
In its recent financial briefing Pepco Group disclosed to its shareholders that it is "continues to actively explore separation options for Poundland business with an exit expected by end of FY25".
This statement suggests that Poundland is on track to seal a deal by the conclusion of its ongoing financial year, ending in September. Industry rumours hint at several investment firms and private equity groups showing interest in acquiring the retailer.
Reportedly, Gordon Brothers, the present owner of Laura Ashley, is leading the race to secure an agreement. The Telegraph last week suggested that the potential rescue sale might involve shuttering up to 200 Poundland shops.
Recent disclosures show that Poundland's revenues slipped 6.5% to €985million (£830million) in the first half ending March, a downturn from the previous year, reports the Mirror.
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The brand encountered difficulties across the board, resulting in 18 net store closures during this timeframe. Poundland is now projected to report earnings between 0 and €20million (£16.9million), adjusting down from original projections of €50million to €70million.
Pepco Group, based in Poland, experienced a revenue increase of 4.3% totalling €3.34billion (£2.82billion) for the half-year term.
Commenting on the situation, Pepco's chief executive Stephan Borchert 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."
In an announcement this March, Pepco Group confirmed its intentions to sell Poundland. The company had engaged Alix Partners earlier in the year to conduct a strategic review of the brand.
A Pepco Group spokesperson informed 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 firm attributed the decision to a "challenging" UK retail environment and recent Budget announcements, which included increased National Insurance costs for employers and a rise in the minimum wage.
With more 820 outlets and a workforce exceeding 16,000, Poundland operates extensively across the UK and Ireland, where it trades under the name Dealz.
This news arrives as Poundland shuts down three more stores. The Brackla shopping centre branch in Wales closed May 24, and will reportedly be followed by the Chiswick High Road store on May 28.
Additionally, the discount retailer closed its Copdock Mill Interchange location in Ipswich on May 20, the Mirror reported
This came after the closure of its Clapham Poundland branch in London on May 2, followed by the shutting down of its store in Liverpool's Belle Valle shopping centre on May 6. Subsequently, its outlet in St George's Centre in Gateshead, Kent, ceased operations on May 8.
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