Following the sale of discount high street chain Poundland, thousands of jobs are now at risk, with the closure of several shops anticipated. Poundland has been acquired by investment firm Gordon Brothers, former owners of Laura Ashley, for a nominal fee of €1, as reported by Sky News.
The previous owners, Pepco Group based in Poland, will receive tens of millions of pounds as part of the sale. Poundland currently employs approximately 16,000 individuals across a network of over 800 stores in the UK and Ireland.
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About 100 Poundland stores are expected to cease operations, and negotiations for rent adjustments with landlords are also on the horizon. The chain, recognized for its £1 pricing strategy, was put up for sale earlier this year due to a decline in trading performance exacerbated by increased tax burdens imposed by Chancellor Rachel Reeves in the November budget.
As part of the acquisition, a restructuring plan that necessitates High Court approval is in the works. Pepco, the owning company, will provide further details on this restructuring in the near future. Additionally, Pepco will retain a minority ownership stake in Poundland.
Pepco anticipates that this deal will facilitate a shift away from the food and beverage sector, enhance revenue growth, and bolster profitability. Stephan Borchert, CEO of Pepco Group, expressed confidence in the transaction’s ability to support their value creation program and streamline operations, focusing on the successful Pepco business.
«Poundland continues to be a prominent player in the UK discount retail landscape, attracting millions of customers annually with its beloved brand and offerings,» Borchert added.