Poundland 'could be sold in weeks' amid auction

Poundland’s owner has launched a sale process for the discount chain.

The proposed move comes after private equity firm Gordon Brothers bought the business last June for £1.

Gordon Brothers has hired corporate advisory firm Alvarez & Marsal to sound out potential buyers.

It is understood the operator launched the formal sale process today (Wednesday, September 2) and will start to talk with potential suitors for the retailer amid initial interest from a number of parties.

It is understood TG Jones and Hobbycraft owner Modella is among groups to have already made approaches regarding their interest.

The sale process is expected to complete swiftly over the coming weeks, amid internal hopes the process will finish ahead of the key festive trading period.

Poundland has undergone a major overhaul under Gordon Brothers, amid efforts to turn around significant losses and offset weak consumer demand, which saw more than 100 stores across the UK close.

Recovery efforts have focused on simplifying the business and overhauling its pricing structure.

It has returned to a simple £1, £2 and £3 grocery pricing across all its UK shops, and rolled out simpler pricing for its general merchandise and clothing ranges.

A spokesperson said: “We’re not going to be distracted from the successful recovery we’re putting in place through good old-fashioned back-to-basics retailing. Lower prices. New ranges. Better service.”

Earlier this year, Gordon Brothers bought the LK Bennett and Radley brands from administration.

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