Poundland set to be offered ‘for a pound’ as frontrunners for takeover are revealed | EUROtoday

Poundland might be offered for a pound, with the UK low cost retail chain reportedly struggling amid powerful buying and selling situations.

Back in March, its proprietor Pepco Group stated it was contemplating “all strategic options” to spin out the struggling 825-strong chain from the broader group because it targeted on its extra worthwhile Pepco model.

Now, with bidders circling the enterprise, it has been reported it might be offered for simply £1. Sources advised The Times it might go for “effectively a pound” because of the vital turnaround wanted to arrest its declining efficiency.

Gordon Brothers, the previous proprietor of Laura Ashley, is regarded as the entrance runner to take management of the funds chain.

Interested events reportedly additionally embody Modella Capital, Alteri, proprietor of Bensons for Beds and Hilco Capital, which owns Lakeland.

open picture in gallery

However, formal provides aren’t set to be tabled till Monday.

Poundland made £1.6 billion in gross sales final yr, but it surely has since endured powerful buying and selling. Its like-for-like gross sales fell 7.3 per cent within the three months to December 31, it reported in January.

As a part of the plans, Pepco stated former Poundland managing director Barry Williams, who took over as managing director of Pepco in September 2023, will return to his former position at Poundland forward of a potential sale.

Stephan Borchert, chief government of Pepco Group, stated: “The board and I are actively exploring separation options for Poundland, including a potential sale, from the group, with consideration also given to the separation of the well-performing Dealz Poland over the medium term.

“Barry Williams did a great job as managing director of Pepco, returning it to like-for-like sales growth, and I am confident he will play a pivotal role in getting Poundland back on track, given his previous success there.”

A Pepco Group spokesperson stated: “As announced at the Capital Markets Day on 6 March, Pepco Group is moving away from fast-moving consumer goods to create a simpler business focused on higher margin clothing and general merchandise, and is actively exploring separation options for Poundland, including a potential sale, from the Group.

“With Barry Williams’ re-appointment as managing director, Poundland is executing a turnaround programme to get the business back on track, focusing on its core heritage strengths, and a simpler pricing proposition and customer offer.”

Gordon Brothers have been approached for a remark.