Poundland bosses back buyout for about 600 stores

Poundland bosses back a management buyout with Martin Property Group for the chain’s around 600 UK and Ireland stores, the company told the Express & Star in a news report published Oct. 15.

The proposal matters because Gordon Brothers is seeking a buyer after a Sept. 28 bid deadline, as Poundland reported 9.8% like-for-like sales growth in the first week of the current quarter, versus 6.7% in September, in Oct. 8 results.

The company said Poundland managing director Barry Williams and Andy Bond, Pepco’s former CEO, are working with Martin Property Group on a “fully funded, ready-to-go” bid. A management buyout is a transaction in which executives acquire the business they run.

A Poundland spokesperson said the company would talk to other parties, adding its “sole intention is to work with whoever can deliver the best result for the business, colleagues and suppliers and build on the successful recovery that’s already taking shape”.

Williams said after the Oct. 8 trading update: “We ended Q4 with significant momentum, returning to positive like-for-like growth and that momentum has only strengthened in the first week of the new financial year.”

The auction has drawn other reported interest. Modella Capital, owner of TG Jones and Hobbycraft, is believed to be among bidders, while Lakeland owner Hilco Capital and Fortress Investment Group, owner of Poundstretcher, have reportedly shown interest, according to the Express & Star report.

Fortress is understood to be interested in part of the estate, described in the report as 200 to 250 stores. That would differ from the management-backed proposal, which Poundland says would keep the business intact.

The stakes extend beyond ownership. Atlas360 reported on Oct. 13 that 12,000 Poundland jobs face risk in rescue talks as management pursues a buyout and Gordon Brothers seeks buyers.

Usdaw, the retail trade union, has expressed “deep concerns” that Poundland could be moving closer to administration, according to the Express & Star. Poundland’s spokesperson said bosses were a “little bemused” by speculation about the company’s future.

Poundland was founded in 1990 by Steve Smith, a former market trader from Willenhall. The chain later became one of Britain’s best-known discount retailers, but has faced pressure from online shopping and rivals including B&M and Home Bargains.

Its recovery plan has returned UK stores to £1, £2 and £3 grocery pricing, with around 60% of grocery items priced at £1. Poundland has also removed frozen food, cut some chilled ranges, exited online sales and relaunched in-house Pep&Co clothing in the UK and Ireland.

The company said a pilot to expand general merchandise and clothing ranges began in mid-September and is live in 15 stores, including The Swan Shopping Centre in Yardley, Birmingham.

Alvarez & Marsal, which has been advising Gordon Brothers, told the Express & Star there was no update to share. The report said the company has been evaluating bids submitted on Sept. 28.

Source: news report, Express & Star, Oct. 15, 2026