Modella Capital, known for buying struggling retailers and putting them through aggressive cost-cutting restructures, is said to be among suitors for Poundland.
The owner of TG Jones, which is closing up to 150 stores after a restructure was launched in July, is being sounded out for interest by current Poundland owner Gordon Brothers, Sky News reported.
Modella Capital bought WH Smith’s high street estate of about 450 stores last year and rebranded them as TG Jones. The private equity firm blamed weak consumer spending and a lack of awareness of the new brand when the restructure was announced.
Modella also bought The Original Factory Shop and Claire’s in 2025 and put both into administration this year. All TOFS and all Claire’s standalone stores have since closed. Liquidators were appointed for TOFS in July.
Read more: Where did things go wrong for The Original Factory Shop?
Modella reportedly made it to a shortlist of suitors when Poundland was last for sale in May 2025. Modella is said to have not yet committed to a bid this time round.
Poundland has already been through a restructure since Gordon Brothers bought it in June last year, leading to the closure of about 180 stores and two depots, along with about 2,200 job losses. It leaves an estate of about 640 stores and 14,400 employees.
News that Gordon Brothers was considering selling the discount chain emerged last week, with advisors appointed to run an auction.
Gordon Brothers and Modella were approached for comment.
A Poundland trading update on Thursday revealed like-for-like sales fell by 1.5% over the nine months to 30 June 2026, after it overhauled its range to focus on the £1 price point. Like-for-like volume sales rose by 5%, but price drops meant it did not feed through to value sales growth.
The 1.5% drop in like-for-like value sales is nevertheless an improvement on the 2.9% decline in the quarter to 28 December 2025.
Poundland said EBITDA was broadly in line with expectations and more than £70m ahead of the same period a year earlier.
Poundland MD Barry Williams said: “Day by day and week by week we’re getting the Poundland business back on track.”
No comments yet