Poundland Sold for £1, Plans Up to 200 UK Store Closures

Poundland, a major UK discount retailer with over 800 stores and 16,000 employees, has been sold by its parent company Pepco Group to investment firm Gordon Brothers for a nominal sum of £1. The sale includes an £80 million cash injection to support a significant restructuring plan aimed at reversing recent financial struggles, including a 6.5% revenue drop and losses from shoplifting. As part of the restructuring, Poundland is expected to close between 100 and 200 stores and seek rent reductions on about 500 others, potentially impacting thousands of jobs and further affecting Britain's high streets. Despite these challenges, the company insists that the Poundland and Dealz brands will continue operating in the UK, Ireland, and Isle of Man, with CEO Barry Williams remaining in charge. Pepco will retain a minority stake and continue supporting the business with inventory purchasing and IT services while shifting its focus to higher-margin clothing and general merchandise businesses. The restructuring plan requires High Court approval and aims to stabilize Poundland amid an increasingly difficult retail environment marked by rising costs, declining footfall, and competition from larger supermarkets.