Poundland sale talks have intensified as its owner considers breaking up the discount retailer, putting around 12,000 jobs at risk. Gordon Brothers is negotiating with several potential buyers over a deal for the whole business or parts of it.
At least two bids are understood to cover Poundland in its entirety, but selling shops individually to other retailers is increasingly seen as the more likely outcome. Lidl and Iceland are among those thought to have shown interest in acquiring stores.
There have also been discussions with Chris Dawson, whose CDS Superstores group owns The Range, Homebase and Wilko.
Gordon Brothers had previously wanted to sell Poundland to Martin Property Group, an Irish company with property interests including shopping centres and hotels. That deal has been complicated by Martin Property Group’s reluctance to commit to repaying a £30 million shareholder loan upfront.
The issue has prompted fears that Gordon Brothers could instead liquidate the retailer within a year. Talks, which began at the start of September, were continuing this week and a decision could be reached within days, according to a source close to the discussions.
A collapse would be one of the biggest retail insolvencies in years. Poundland has already faced prolonged pressure from weaker consumer spending and rising operating costs.
The retailer, which opened in 1990, now sells fewer goods priced at £1 than it did at launch. The cost of employing staff has also increased.
Gordon Brothers bought the business for a nominal €1 in 2025, after it narrowly avoided administration amid what was described as challenging trading conditions. Poundland closed 149 shops last year, resulting in 2,200 job losses, and now operates about 600 stores.
The retailer has rejected claims by shopworkers’ union Usdaw that it is on the verge of collapse. Its employees are awaiting further information as the sale process continues.
A Gordon Brothers spokesman said: “While Martin Property Group had been identified as the preferred bidder by Poundland’s management team, attention must now turn to other active bids.
“As well as interest from buyers for the whole business, the sale process has also surfaced a number of formal and indicative offers for significant viable parts of the business from established retail operators.
“These options will now be objectively evaluated, with a view to minimising uncertainty for Poundland’s people and all relevant stakeholders.”
The developments come as Chancellor John Healey seeks to restore the confidence of retail leaders facing higher taxes and other costs introduced under his predecessor, Rachel Reeves.
