The British low cost chain was put up on the market by its Poland-based guardian firm in March amid a difficult retail atmosphere.
Poundland has underperformed in contrast with Pepco Group’s different manufacturers Pepco and Dealz, which recorded gross sales progress of 9.3% and 13.8% respectively within the six months to 31 March. Income at Poundland dropped 6.5% to €985m (£831m) throughout the identical interval.
Poundland at present employs 16,000 employees throughout 800 shops within the UK and Eire. All its shops, employees, belongings and liabilities will transfer underneath Gordon Brothers’ possession as a part of the deal.
The retailer will proceed to function underneath the Poundland model within the UK and underneath the Dealz model in Eire and the Isle of Man.
Barry Williams, who returned to Poundland as managing director in January, will proceed to steer the enterprise. Pepco Group expects to retain a minority stake in Poundland, topic to the court docket’s approval of its proposed restructuring plan.
Williams stated: “We welcome Gordon Brothers as we give attention to returning Poundland to its core heritage class strengths and place as an important enterprise to UK households. We stay up for working with our provider base to make sure we proceed offering distinctive worth to budget-conscious shoppers within the UK.”
Mark Newton-Jones, head of Europe, the Center East and Africa at Gordon Brothers, stated: “We’re delighted to offer Barry Williams and his administration group with the financing to help the substantial turnaround of this iconic retailer. We imagine Poundland is an important retailer serving UK shoppers and performs an vital position on the excessive avenue.”
