Poundstretcher owner Fortress Investment Group is reportedly in talks to buy rival discount chain Poundland from its current owners, Gordon Brothers. Advisors overseeing the sale are said to be seeking a deal before the end of October.
Sale process underway
Poundland was put up for auction at the beginning of September by US-based investment firm Gordon Brothers, which acquired the retailer from Pepco Group for £1 in 2025. Alvarez & Marsal is overseeing the formal sale process.
According to the Retail Gazette, Fortress Investment Group is in discussions with Gordon Brothers about a potential takeover. Both chains sell household, garden and food items at budget prices, making them long-standing competitors on UK high streets.
Restructuring and store closures
Since acquiring Poundland, Gordon Brothers has launched a major restructuring plan that has seen roughly 200 stores closed across the UK, reducing the estate to around 600 locations. The chain also moved its website to a browser-only format and shut down its Perks loyalty app.
Poundland has been returning to its value roots, with more products priced at the signature £1 point and grocery pricing simplified to around £1, £2 and £3 tiers.
Other interested parties
Alvarez & Marsal is also said to be engaging with other parties interested in taking over the chain, including TGJones and Hobbycraft owner Modella Capital. Financial and strategic investors will consider the bids.
Fortress recently oversaw the rescue of Poundstretcher, securing High Court approval for a restructuring plan in June 2026 after acquiring the chain in 2024. The deal aimed to reduce property costs and avoid administration, protecting roughly 300 stores and 3,000 jobs.
Fortress is reportedly not considering a merger of the two brands at this time. While discussions are said to be in the early stages, Poundland has yet to comment on the sale process. A spokesperson previously told the Daily Record: "We're not going to be distracted from the successful recovery we're putting in place through good old-fashioned back-to-basics retailing. Lower prices. New ranges. Better service."
