Gordon Brothers acquires Poundland, pledges £80m to turnaround plan
Gordon Brothers has acquired British discount retailer Poundland from Pepco Group, backing a proposed management-led turnaround plan with up to £80 million in financing.
Investment firm Gordon Brothers has acquired Poundland from Pepco Group and pledged up to £80m for the retailer’s proposed management-led turnaround plan.
Barry Williams, who returned as CEO in March, will continue to lead the business as it undergoes restructuring amid challenging trading conditions.
The discounter, known for its low prices and wide product range, operates around 800 stores across the UK and Republic of Ireland, employing approximately 16,000 people.
Williams said: “Poundland is a UK and Ireland retailer of real significance, serving 20 million customers each year with a much-loved brand. Although recent trading has been challenging, we have built a turnaround plan with a simplified and more focused Poundland at its heart, as we aim to deliver the amazing value our customers expect. In due course we’ll share more details of the proposed restructure and turnaround plan.”
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Gordon Brothers head of Europe, Middle East and Africa Mark Newton-Jones added: “We are delighted to provide Barry Williams and his management team with the financing to support the substantial turnaround of this iconic retailer. We believe Poundland is an essential business to UK consumers and plays an important role on the High Street.”
The deal follows months of uncertainty amid a formal sale process led by advisers Teneo, which saw Gordon Brothers emerge as the frontrunner among potential buyers, alongside turnaround investor Hilco Capital.
Poundland’s management has also reportedly been pushing for significant rent reductions on hundreds of stores as part of survival efforts.
Negotiations for cuts of between 10% and 50% are understood to be underway, while closures of more than 100 stores are anticipated under the new ownership’s restructuring plans — putting thousands of jobs at risk.
Pepco Group had earlier flagged the UK retail market’s challenging conditions and reported a £548m loss in December following a £650m write-down on its UK operations, citing “significant decline in performance” and rising costs at Poundland.
The sale marks Pepco’s strategic shift towards a simplified business model focused on higher-margin clothing and general merchandise under its Pepco brand.
Pepco and Poundland have agreed transitional service arrangements to support the handover period, covering IT and procurement services.
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