Key facts
- Gordon Brothers is reportedly exploring the sale of Poundland, a year after acquiring it.
- Advisors Alvarez & Marsal have been appointed to manage the sale process.
- Formal bids are expected by early October, ahead of the Christmas trading period.
- Poundland reported an £85 million pre-tax loss and a 12% sales decline in the year to September.
- The retailer underwent significant restructuring, including store closures and job cuts.
Gordon Brothers, the investment firm that acquired discount chain Poundland just over a year ago, is reportedly exploring a sale of the retailer. The firm has appointed advisors Alvarez & Marsal (A&M) to sound out interest from potential buyers, with a list of formal bids expected by the start of October. This accelerated process is intended to secure Poundland's future before the critical Christmas trading period.
Poundland has faced challenging economic conditions, leading to an £85 million pre-tax loss and a 12% decline in sales to £1.5 billion in the year ending September. The company also underwent a significant restructuring, shedding 11% of its workforce and closing nearly 200 stores. Despite these difficulties, Gordon Brothers asserts that Poundland has shown signs of recovery, including opening its first new store in two years and working to reinstate its £1 price point on grocery items.