The sale process for Poundland is reportedly underway, just one year after the UK discount chain was sold for £1 and underwent a major restructuring programme.
US-based investment firm Gordon Brothers acquired the retailer from PepCo Group last July for £1. Last month, it was reported that the owners were looking to sell the business.
Auction overseen by Alvarez & Marsal
Alvarez & Marsal (A&M) has been hired to oversee the auction. The advisory company is now said to be seeking a sale of the British business before the end of October, according to people briefed on the process, reports Sky News.
The initial sale process was reportedly kicked off on Wednesday, September 2. A&M has begun to contact prospective buyers, with initial bids said to be tabled early next month.
Modella Capital emerges as bidder
The news comes just after it was reported that Modella Capital, the owner of TJ Jones, had emerged as the latest bidder for Poundland. The firm has not yet confirmed whether it has officially placed a bid, although the Daily Record did reach out for a comment.
The investment firm was reportedly being "sounded out" for its interest in purchasing the discounter, with insiders claiming it would be a logical buyer after purchasing Poundland's sister company, Poland's Dealz, several months ago. Financial investors are also reportedly showing interest in the business.
Restructuring and recovery
The reported race to sell Poundland, which employs about 12,000 people across around 600 sites in the UK, comes just ahead of the crucial festive trading season.
The auction process comes one year after Gordon Brothers kickstarted a massive overhaul of the business. The deal led to the closure of roughly 150 stores, alongside the discontinuation of its loyalty scheme and online shopping feature.
Poundland has seen a return to form following the extensive restructuring. It has since "reinvented" its top-to-bottom ranges, which the business says are now being rolled out to stores across the UK and Ireland. The retailer has also made "significant progress" throughout its recovery plan and has opened two more stores, with one in Lakeside, marking its first opening in two years since August 2024.
Sales are also on the rise, with Poundland recently issuing a performance update that highlighted "positive" trading progress over the first nine months of its current FY26 financial year, which is reportedly £70m ahead of the same period in FY25.
A spokesperson for Poundland said it cannot comment on the sale process, although they did tell 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."
Recent store closures
It comes after the Daily Record reported that Poundland had recently closed down its Inverurie site on August 17. The branch had been serving the local community for 16 years. Initially located on Unit 3, Station Square, the closure means that there are now only two Poundland stores left in the Aberdeen area. These can be found in the Trinity Centre and at the Berryden Retail Park.
Gordon Brothers and A&M have been approached for a comment on the official auction process.
