**Poundland Sold as New Owners Mull Over 200 Store Closures**
The future of one of Britain’s leading discount retailers has been thrown into uncertainty following the sale of Poundland to investment firm Gordon Brothers. The deal was completed for what has been described as a “nominal sum” by previous owner, Pepco Group, marking a significant shift in the UK high street’s landscape.
Newly published reports indicate that the new ownership will not only face challenging trading conditions but may also be set to close a significant number of stores, with as many as 150 to 200 branches facing the axe. Poundland, which operates more than 800 shops and employs around 16,000 staff, is anticipated to undergo sweeping reforms in an aggressive recovery bid led by the incoming investors.
In addition to potential closures, there are suggestions that up to 500 further outlets could enter into rent renegotiation talks. The aim is reported to be reductions in rent payments of between 10% and 50% for a majority of locations. Central to this strategy is the possibility of Poundland exiting certain leases altogether, utilising a court-approved restructuring plan if permitted by the judiciary.
To support such an extensive overhaul and to help the business stabilise, Gordon Brothers are expected to inject between £70 million and £100 million in fresh capital. This comes at a crucial time for Poundland, whose recent financial performance has been underwhelming. Parent company Pepco slashed its full-year profit forecast last month in response to what it called “highly challenging trading conditions,” culminating in a 6.5% sales slump to £830.8 million for the half-year ending 31 March.
The struggling performance has led to a marked reduction in expected underlying earnings before interest, tax, depreciation, and amortisation (EBITDA), now predicted to be in the range of £0 to £16.8 million—significantly lower than initial expectations. The stark figures illustrate the depth of the pressures facing UK chain retailers amid fluctuating consumer demand and increased operational costs across the high street.
Stephan Borchert, the chief executive at Pepco, openly acknowledged the difficulties: “At Poundland, trading remains challenging, which is reflected in a profit outturn below expectations for H1 and a weaker outlook for the full year.” He voiced strong support for Barry Williams, who returned as Poundland managing director in March 2025, crediting him and his team for implementing a turnaround plan aimed at bringing Poundland’s focus back to its value-driven roots.
Recent trading updates highlight the scale of Poundland’s recent downturn. Revenues for the six months ending March this year receded by 6.5% to €985 million (£830 million) compared with the same period the year before, with the retailer reporting “challenges across all categories” and a net closure of 18 stores during that time.
The future earnings outlook for Poundland is equally cautious. The latest guidance suggests the chain is now targeting operating earnings of between €0 and €20 million (£0 to £16.9 million), a significant fall from earlier predictions of €50 to €70 million. While the wider Pepco Group, based in Poland, posted a total revenue rise of 4.3% to €3.34 billion (£2.82 billion) for the half year, like-for-like sales were fractionally lower overall, as steady growth within Pepco shops failed to compensate for the declining performance at Poundland.
The impending ownership transition and planned store rationalisation underscore the broader pressures facing discount and variety retailers in Britain. As cost-of-living challenges persist and high street footfall remains inconsistent, the industry’s volatility continues to test the resilience of established chains like Poundland.
With thousands of workers and hundreds of local communities reliant on the retailer’s presence, the coming months are likely to be a period of anxiety and adaptation as Poundland’s new owners grapple with the task of securing a long-term, sustainable future for the brand. Further news of store closures and renegotiations is expected as the recovery strategy unfolds.