Poundland sales have risen sharply despite its owners filing a notice of intention to appoint administrators, placing up to 12,000 jobs at risk.
A note sent to suppliers indicated that sales increased by 8.4 per cent in the three weeks to October 18. Sales, margins and gross profits were said to be running ahead of expectations, with one source describing the business as “flying”.
The improvement has been described by bosses as a return to profitability, but the discount retailer’s future remains uncertain after investment firm Gordon Brothers approached the High Court on Thursday.
Poundland now has ten days to find a buyer. Gordon Brothers has already closed more than 100 stores and two warehouses in South Yorkshire and the Midlands since taking control of the chain last year.
Poundland faces break-up after rescue talks fail
The company said it had received formal offers from “several established retail operators” covering a “significant part of the business”. The statement suggested that Poundland could instead be broken up and sold in sections.
Talks with Martin Property Group collapsed after Gordon Brothers insisted that the prospective buyer take on a £30 million loan inherited when the chain was bought for a nominal £1 in June 2025.
The decision has prompted criticism from unions and politicians, who have questioned why a possible rescue deal was not accepted while the retailer’s trading performance was improving.
Business Secretary Jonathan Reynolds said: “If there is a potential owner that can continue that progress, obviously that naturally sounds like the best way forward. So if that hasn’t been accepted, I want to know why that is the case.”
Poundland founder Steve Smith accused the current owners of being “greedy” and claimed the consequences could extend well beyond the retailer’s own workforce.
“If Gordon Brothers are being greedy then it is going to cost thousands of jobs, in the newspapers it says 12,000 jobs are at risk. My estimate is more like 30,000 jobs,” he said in a statement posted on LinkedIn.
Mr Smith said the wider figure included workers at Poundland’s suppliers, adding: “It is not just the people that work for Poundland it is also their suppliers they have thousands of suppliers, some that just serve them, therefore these suppliers will suffer or be at risk of going into administration.”
He also claimed he had tried “several times” to speak to Gordon Brothers but that the investment firm had “never returned my call”.
Bally Auluk, national officer for the Union of Shop, Distributive and Allied Workers, described the situation as “incredibly distressing” for staff and accused Gordon Brothers of attempting to “jeopardise their livelihoods”.
He urged the owners to reconsider their position and give priority to a single buyer for the business.
Retailers linked with Poundland shops
Potential buyers reportedly include rival Poundstretcher, which is owned by US investment group Fortress, as well as Iceland and Lidl.
CDS Superstores, the group behind The Range, Homebase and Wilko, is also thought to be interested. Modella Capital, which bought WH Smith’s high street business and rebranded it as TG Jones, has also been linked to discussions.
Poundland has faced difficulties after moving away from the single £1 price point that defined its identity and expanding into clothing and frozen food, according to retail expert Jonathan De Mello.
The chain is also operating amid higher costs linked to increases in wages and employer National Insurance contributions, while online retailers including Amazon and Temu have intensified competition for shoppers.
