Iceland is reportedly among the retailers that have tabled a bid for a small number of Poundland stores, as the discount chain's owners continue to explore a sale.
The frozen foods giant is one of six or eight retailers said to have made formal bids for select sites, according to City AM. If none of these bids are deemed suitable, Poundland's 600 stores could potentially be broken up.
Sale process underway
Poundland is currently in the middle of an auction process, just over a year after it was bought by US investment firm the Gordon Brothers for £1 in summer 2025. In early September, it was reported that the owners were looking to sell the business, with Alvarez & Marsal (A&M) overseeing the process.
Iceland, which has around 900 UK stores, is said to be interested in buying a limited number of Poundland stores in the event a single buyer cannot be found. A spokesperson for Iceland told City AM: "Iceland are always looking at potential new locations as part of its ongoing operations."
Other interested retailers
Alongside Iceland, fellow discount supermarket Lidl is also said to have tabled a bid for one store, with the potential to pick up more. Other names reportedly attached to possibly taking over a small number of stores if a break-up happens include B&M, The Range and Poundstretcher.
At this stage, no formal announcement or confirmation has been provided by Poundland or the Gordon Brothers. Rumours of a potential sale have been circulating for a while, with the Boston-based Gordon Brothers said to be racing to secure a suitable deal ahead of the busy Christmas trading period.
Recent performance and changes
The sale process comes after Poundland saw a return to form following a massive restructuring programme, delivering a 3.3 per cent like-for-like growth in the final quarter of its financial year, and 6.7 per cent in the month of September. The budget discounter has also launched a recruitment drive, creating 400 seasonal roles, and confirmed that stores would be closed on Christmas Day, Boxing Day and New Year.
The restructuring, which saw between 150 and 200 stores closed down, also resulted in a shift in strategy, with Poundland focusing on a return to basics, axing its loyalty scheme and online shopping service, while bringing back its popular singular pound pricing strategy.
The business said it had made "significant progress" throughout its recovery plan, with new store openings planned for the future, and had "reinvented" its top-to-bottom ranges being rolled out across the UK and Ireland. The Daily Record has approached Iceland, the Gordon Brothers and Alvarez & Marsal for a statement.
