Poundland’s owner is reportedly exploring a sale of the discount chain just over a year after buying it.
Gordon Brothers is said to be in talks with advisers over an auction process for the retailer.
Advisers are expected to be appointed within days, though Gordon Brothers is yet to make a final decision over a sale, Sky News reported.
Gordon Brothers bought Poundland from Pepco Group for a nominal sum of £1 in June last year. The sale led to a restructure involving mass store closures.
About 150 stores had closed by January this year, leaving 650. The retailer also closed two distribution centres and shed 2,200 jobs, leaving it with 12,000 employees.
A trading update at the time revealed Poundland like-for-like sales were down 2.9% in the quarter to 28 December 2025, though its MD Barry Williams said it was “on the right track”.
Following the sale last year, Poundland also embarked on a back-to-basics strategy of refocusing the retail offer around the £1 price point.
Read more: Poundland MD Barry Williams on returning to £1 basics to win back shoppers
Poundland’s full accounts for the year to 29 September 2025 are overdue at Companies House.
A Poundland spokesman declined to comment on the possibility of a new sale process. “We’ve made very significant progress over the past year with a recovery plan that’s created simpler, better value for customers centred around thousands of items back at our iconic £1 price point.” he said.
Gordon Brothers was approached for comment.
Bally Auluk, national officer at Usdaw, the trade union for Poundland staff, said: “It is deeply disappointing that the new owners are already considering the sale of the Poundland business. If true, our members will be extremely worried about their future.
“It is also concerning that the business did not brief staff or the union ahead of these stories emerging in the media. We are now seeking urgent talks with the business, to seek clarity on their future intentions.
“In the meantime, we are providing our members with the support and advice they need at this very difficult time.”
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