Poundland is set to be sold as it struggles to battle an "increasingly challenging" UK retail landscape with some stores at risk of closure, it has been reported.
There are fears that a number of Poundland's 825 sites could end up closing their doors after the budget retail giant hired advisory firm Teneo to oversee a sale of the business. It comes after parent company Pepco Group confirmed last week that it was exploring "all strategic options" for Poundland, including a potential sale.
A spokesman for Pepco Group confirmed to The Mirror: "As stated at our capital markets day on March 6, we are actively exploring separation options, including a potential sale, for the Poundland business. We have started to work with advisers to support us with this process."
In a statement issued last week confirming its intention to explore a sale, Pepco said: "Poundland is a strong brand that serves millions of customers every week and had around two billion euros (£1.67 billion) in annual turnover in financial year 2024, but it is also operating in an increasingly challenging UK retail landscape that is only intensifying.
"From April 2025, the UK Government's additional tax changes announced in the Budget will also add further pressure to Poundland's cost base. Therefore the board is actively evaluating all strategic options to separate Poundland from group during financial year 2025, including a potential sale."
Established in 1990 with its inaugural store in Burton Upon Trent, Staffordshire, Poundland now operates outlets across the UK and the Republic of Ireland. With approximately 18,000 employees, the chain serves up to seven million customers weekly.
In December, it was reported that Poundland's future was in doubt, with Pepco Group's new CEO announcing that they were open to "every strategic option" for the faltering retailer. It followed Pepco's decision to devalue Poundland by £642 million in their accounting records, an adjustment stemming from challenging trading conditions and increasing expenses in the wake of changes announced in the Budget.
Last spring, Poundland confirmed that it would be closing nine former Wilko stores, including the Viking Centre branch in Jarrow, just months after opening. The chain bought 71 Wilko stores when the chain went into administration in 2023, with a spokesperson saying that the closures were part of a "constant review" of its estate.
The news is the latest blow to the UK high street, with other big name chains having announced closures in recent months. In February, is was reported that fashion retailer Select is planning to close 35 stores, including North East branches in South Shields and Ashington. And earlier in the month, Homebase confirmed that it will be closing 33 more of its sites, with several North East stores on the list.
Join our WhatsApp communities
ChronicleLive is now on WhatsApp and we want you to join our communities.
We have a number of communities to join, so you can choose which one you want to be part of and we'll send you the latest news direct to your phone. You could even join them all!
To join you need to have WhatsApp on your device. All you need to do is choose which community you want to join, click on the link and press 'join community'.
No one will be able to see who is signed up and no one can send messages except the ChronicleLive team.
We also treat our community members to special offers, promotions, and adverts from us and our partners.
If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'.
If you’re curious, you can read our privacy notice.
Join the ChronicleLive Breaking News and Top Stories community
Join our Court & Crime community
Join the Things to do in Newcastle and the North East community
Join our Northumberland community
