Poundland posted a "blockbuster" Halloween week, with sales up 11.4% year on year, casting doubt on claims by its US owner about the discount chain's struggles. The retailer is expected to plunge into administration, threatening more than 10,000 jobs.
Sales figures contradict owner's claims
Internal figures seen by The Mirror show Poundland raked in nearly £32 million in sales in the week to last Sunday, £1.5 million ahead of budget and an 11.4% surge year on year. Its profit margin grew to 36.7%.
This followed what bosses called a "fantastic" October, with sales of £107 million, up 7% on a year ago. Profits of £1.9 million for the month were £1.8 million ahead of budget and £1.2 million higher than a year ago.
Owner faces pressure over rejected bid
Investment firm Gordon Brothers, Poundland's controlling shareholder, faces intense pressure from Prime Minister Andy Burnham, Business Secretary Jonathan Reynolds and others for rejecting a solvent bid from a Northern Irish-based business. The board filed a notice of intention to appoint administrators last Thursday, threatening 10,500 direct job losses.
Sky News reported that a letter from Mark Newton-Jones, who runs Gordon Brothers' European operations, to a senior advisor at the Department for Business, Innovation, Science and Technology claimed it had "supported Poundland with £85m of additional financing" since acquiring the business in the summer of 2025.
Economic challenges cited
Newton-Jones' letter stated: "Like other high street retailers, the company faces multiple economic challenges, including rising inflation, increasing staffing costs and shrinkage from severe levels of shoplifting, which means it is still not cash-generative at a sustainable level despite the turnaround efforts."
However, one retail industry source branded the claims "bunkum." Gordon Brothers, which bought Poundland for £1 and launched a sale process at the start of September, has rejected a takeover offer from Irish real estate firm Martin Property Group, which management named as their preferred bidder.
Rescue talks continue
The Prime Minister's official spokesman told reporters on Tuesday: "We continue to stay close to what's an extremely worrying situation for Poundland staff, their families and communities."
Gordon Brothers had overseen a turnaround programme that saw more than 100 shops closed over the past year. Newton-Jones argued that breaking up the chain, with retailers including Tesco, Lidl and B&M interested, offered the best prospect of protecting jobs. Tesco has held talks over proposals to buy up to 150 Poundland stores, while Poundstretcher owner Fortress showed interest in as many as 250 shops.
