Key facts
- Poundland's owners, Gordon Brothers, are seeking to sell the discount retailer.
- Several bidders are expected to submit offers for Poundland on Friday.
- Gordon Brothers acquired Poundland for £1 just over a year ago.
- The owners anticipate the sale will generate considerable interest.
- Poundland reported an £85 million pre-tax loss in the year to September.
- Group sales for Poundland fell 12% to £1.5 billion in the same period.
Gordon Brothers, the owner of discount retailer Poundland, is reportedly seeking to sell the company for approximately £30 million. The investment firm acquired Poundland for just £1 about a year ago and has appointed advisors Alvarez & Marsal (A&M) to manage the sale process. Several potential buyers are expected to table offers on Friday, with A&M aiming to present a shortlist of formal bids by early October, ahead of the crucial Christmas trading period. Poundland has experienced a turbulent few years, with its current owners attributing difficulties to a tough economic climate and a significant restructuring program. In the year to September, the company reported an £85 million pre-tax loss, nearly doubling the previous year's deficit, while group sales decreased by 12% to £1.5 billion. During this period, the retailer reduced its workforce by 11% and closed nearly 200 stores. Despite these challenges, Gordon Brothers maintains that Poundland has improved since its acquisition and has recently opened its first new store in two years, working to restore its £1 price point on grocery items. Barry Williams, managing director of Poundland, stated that the company is making significant progress in delivering the ranges and price simplicity that customers demand.