Poundland owner Pepco has reportedly appointed advisory firm Teneo to handle the sale of the discount chain, sparking fears stores could be at risk of closure.
The stricken variety discounter has been grappling with a slump in trading following a disastrous transition last year to sourcing non-food ranges at group level through Pepco, with the downturn in sales also spreading to fmcg in latest accounts.
Pepco confirmed last week that it was “actively exploring” all strategic options to separate Poundland from the rest of the business, including a potential sale.
A Pepco spokesperson today declined to comment directly on Teneo’s appointment, reported by The Telegraph. “As stated at our capital markets day on 6 March, we are actively exploring separation options, including a potential sale, for the Poundland business,” the spokesperson said. “We have started to work with advisers to support us with this process.”
Read more: Even Poundland is struggling. What now for the UK high street?
Poundland has 784 stores across the UK and Northern Ireland, according to location data specialists CACI, split between high streets, retail parks and local shopping parades, among other location types.
Warsaw-listed Pepco said last week that Poundland had “been a drag on the group’s financial performance, with lower revenue growth, lower gross margins, higher costs to operate and, consequently, lower profitability and returns on invested capital”.
It also warned: “From April 2025, the UK government’s additional tax changes announced in the budget will also add further pressure to Poundland’s cost base.”
The group added: “Poundland is a strong brand that serves millions of customers every week and had c€2bn annual turnover in full year, but it is also operating in an increasingly challenging UK retail landscape that is only intensifying.”
Pepco CEO Stephan Borchert told Reuters at the time that Poundland had already seen interest from potential buyers, saying there were “definitely interested parties for this business”.
Borchert said he was “confident” the retailer’s future would be decided by September of this year.
Barry Williams was also confirmed as Poundland’s permanent MD, having been appointed on an interim basis in January. Williams previously served as Poundland MD from 2017 to 2023, before being parachuted in as MD of Pepco, Poundland’s sister clothing retailer in Europe.
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