Poundland, the UK discount retailer, could be sold within weeks as its current owners seek a buyer ahead of the crucial Christmas trading period. The private equity firm Gordon Brothers appointed advisers from Alvarez & Marsal to oversee the sale process, which officially began this week. Gordon Brothers acquired Poundland last year for £1, following a period of financial struggle.
Several potential bidders have emerged, including Modella Capital, owner of TG Jones and Hobbycraft. Modella’s interest has drawn attention due to its controversial track record with distressed retailers. The firm recently gained approval for a significant restructuring of WH Smith’s former high street business and has seen job losses following the insolvency of Claire’s and The Original Factory Shop earlier this year. Modella has not publicly commented on the ongoing sale.
Poundland currently operates around 600 stores across the UK and employs approximately 12,000 people. Since Gordon Brothers took control, the retailer has undergone a significant turnaround plan that included closing more than 100 stores—about one-fifth of its estate—and cutting over 2,000 jobs. The company has also simplified its product range, reduced prices, and restored the traditional £1 price point to roughly half of its offerings.
Financial results have been mixed during this recovery. Over the first nine months of the current fiscal year, Poundland reported positive earnings before interest, tax, depreciation, and amortization (EBITDA), outperforming the previous year by approximately £70 million and meeting expectations. However, its latest accounts for the year ending in September 2025 reveal a "material uncertainty" regarding its future unless additional funding is secured before the expiration of a £30 million loan facility from Gordon Brothers next August. Pre-tax losses nearly doubled to £85.2 million, while revenues declined to about £1.6 billion from £1.8 billion the previous year.
The sale process is reportedly being expedited to avoid disruption during the peak holiday season. Bids from interested parties are expected as early as next month. Poundland emphasized that it remains focused on its recovery strategy, stating it will not be distracted by the sale and is continuing with "good old-fashioned back-to-basics retailing."
Gordon Brothers, which also owns fashion brand LK Bennett and handbag company Radley, did not provide a comment on the ongoing process. The future ownership of Poundland remains uncertain as the firm seeks a new buyer to sustain its turnaround and navigate ongoing challenges in the retail sector.