In 2025 Poundland sold to Gordon Brothers at €1, now the UK discount retailer is staring at insolvency

UK discount retailer Poundland is facing the risk of insolvency, with around 600 stores potentially closing and more than 10,000 jobs under threat. The crisis comes a year after its former owner, Pepco Group, sold the retailer to US-based Gordon Brothers for a symbolic €1.

Directors appointed to oversee Poundland's emergency sale process are reportedly expected to resign following a disagreement with the retailer's majority owner, Gordon Brothers, Sky News reported.

“A trio of board members appointed on 15 October are expected to quit after a disagreement with Poundland's majority owner, Gordon Brothers,” the report said.


The dispute reportedly centres on Gordon Brothers' decision not to accept a solvent offer from Martin Property Group. As a result, Poundland faces a growing risk of being broken up through insolvency proceedings, according to Sky News, citing sources.

However, insolvency could still be avoided if a revised takeover offer is submitted within the next 48 hours, the report added.

Martin Property Group is among the parties interested in acquiring the retailer. The Telegraph also reported that Irish company Innovest Holdings was pursuing a solvent bid for Poundland.

Why did Gordon Brothers buy Poundland for €1?

Pepco Group sold Poundland to Gordon Brothers in 2025 for a symbolic €1 as the retailer faced mounting business challenges.

Gordon Brothers, which has experience in restructuring distressed brands, including Laura Ashley, had pledged to inject up to £80 million into Poundland to support its turnaround.

What does Poundland sell?

Poundland is known for offering low-cost products across several categories, including food and drinks, health and beauty, household goods, gardening supplies, DIY materials, pet products, stationery, books, DVDs and toys. The retailer also sells clothing through its Pepco clothing range.

The potential collapse of the retailer could put hundreds of stores and thousands of jobs at risk across the UK.