(Picture: Dinendra Haria/LNP/REX/Shutterstock)
Poundland’s parent company has said it expects to sell the discount chain by September after a fall of over £57 million in revenue in one year.
Up to 200 stores and thousands of jobs are reportedly at risk from the sale, which owner Pepco Group said would not generate ‘major proceeds’.
The firm, which has owned Poundland since 2016, warned that the 818-store business might not make any profits in this latest financial year.
Its revenue tanked by 6.5% to £830 million for the six months to March, compared with a year earlier.
Pepco said they are considering ‘very different options’ for the future of the struggling chain.
A number of potential investors to save Poundland have come forward ever since the chain was put on the market earlier this year.
The favourites to take over are Gordon Brothers, the ex-owner of Laura Ashley, according to the Sunday Telegraph. Bids were expected to be made last Tuesday.
The news comes after it was reported that up to 200 stores could close as part of Poundland’s rescue deal.
These loss-making stores have been identified and could be slashed, alongside thousands of high street jobs, the Telegraph reported.
Poundland employs 15,000 people across a total.
There are plans to close up to three stores in the coming weeks, while as many as 10 sites planned to shut since the start of the year.
Pepco said back in January that recent trading at Poundland stores was challenging as the UK retail environment became tougher towards the end of 2024.
They added: ‘Poundland is a strong brand that serves millions of customers every week and had around two billion euros (£1.67 billion) in annual turnover in financial year 2024, but it is also operating in an increasingly challenging UK retail landscape that is only intensifying.
‘From April 2025, the UK Government’s additional tax changes announced in the Budget will also add further pressure to Poundland’s cost base.
‘Therefore, the board is actively evaluating all strategic options to separate Poundland from group during financial year 2025, including a potential sale.’
Poundland store closures
Chiswick High Road – closing May 28
Copdock Mill Interchange Ipswich, closed May 20.
St George’s Centre, Gravesend – closed last week
Clapham Junction Station, London – closed May 2
Belle Vale Shopping Centre, Liverpool – closed May 6
Brackla, Wales – closing May 24
Connswater Shopping Centre, Belfast – closed end of March
Maidenhead – closed October 2024
Sutton Coldfield – closed early October 2024
Macclesfield – closed August 2024
Retailers have been among the hardest hit by incoming measures announced in last October’s Budget to increase national insurance contributions, on top on another hike in the minimum wage.
Some 13,000 high street stores shut last year.
Big names such as WHSmith, Morrisons, Poundland and NatWest have all lost stores.
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