Poundland owner Pepco Group announced the deal was completed for a “nominal consideration” on 12 June, but sources close to the deal told the Independent the final price was just £1.
Pepco added that it has an agreement in place with Gordon Brothers and Poundland about the creation of a restructuring plan which according to the Independent could involve 100 store closures.
Further details are expected to be communicated by Poundland in due course, but Pepco said that should the plan receive clearance from the High Court it will obtain a minor stake in Poundland moving forward.
Poundland, which currently employs close to 16,000 people and operates more than 800 stores, will remain under the leadership of managing director Barry Williams.
Its current food and drink range includes confectionary, snacking products, soft drinks and ambient products such as pasta.
Commenting on the deal, Pepco Group CEO Stephan Borchert said: “The agreed sale of Poundland marks an important milestone in our strategic plan to move away from FMCG and focus predominantly on Pepco, our higher margin clothing and general merchandise business.
“As set out during our Capital Markets Day in March 2025, this transaction will strongly support our accelerated value creation programme by simplifying the Group and focusing on our successful Pepco business. I am confident that Pepco has the right foundations to be one of Europe’s most successful discount retailers, delivering customer satisfaction, profitable growth and shareholder value.
“Poundland remains a key player in UK discount retail, with millions of customers annually and a well-loved brand and proposition. We want to sincerely thank all the Poundland team for their ongoing commitment and contribution to the Group and wish Barry Williams and his team all the best for the future.”
Food Manufacture has reached out to Gordon Brothers for comment.
Gordon Brothers is a retail investment firm based in Boston, Massachusetts.
