Poundland's owner, Gordon Brothers, has launched a sale process for the struggling discount chain, which has around 600 stores, with a deal expected to be announced in the next few days.
Gordon Brothers, which bought Poundland for just £1 last year, has drafted in three new directors, including restructuring experts, to oversee the retailer as sale talks continue.
Who is in the running to buy Poundland?
Irish real estate firm Martin Property Group is reportedly proposing a solvent acquisition of the entire business, rather than breaking it up and cherry-picking individual stores to buy. This is said to be the preferred option by Poundland bosses.
Martin Property Group could reportedly pay as little as £1 for the company, but would keep all its shops open and protect jobs. Poundland employs close to 12,000 people.
Other parties said to be interested in acquiring varying numbers of Poundland stores include CDS Superstores, the owner of The Range, B&M, TG Jones owner Modella, Lidl and Poundstretcher.
Why is Poundland struggling?
Poundland has been struggling in recent years from rising costs and competition, largely other UK discount retailers and supermarkets including B&M, Lidl, Aldi, Home Bargains, Poundstretcher, and The Range.
More people are also shopping online with budget Chinese retailers like Shein and Temu. Poundland has also lost customer appeal after moving away from its original £1 price model and introducing some items that cost up to £5.
The retailer announced last summer that it was moving back to a simplified £1, £2, and £3 pricing model - and at the time, said roughly 60% of grocery items will be priced at £1, with the rest at £2 and £3, following a successful trial.
What has the owner of Poundland said?
A spokesman for Gordon Brothers said: “After commencing a thorough sale process for the entirety of the company, prompted by interest from several parties, active discussions continue with a number of potential acquirers.
“The offers include those from buyers for the whole business and also indicative offers for significant viable parts of the business from established retail operators.
“The board will now objectively evaluate these options, considering all relevant stakeholders, with a view to minimising uncertainty for the people, suppliers and local communities with an interest in the business and its future.”
