B&M is reportedly seeking to acquire a small number of Poundland stores as part of a sale process that could see the struggling discount retailer broken up or enter administration.

The London-listed retailer is participating in the process managed by restructuring adviser Alvarez & Marsal, but is understood to be interested in acquiring only a limited number of outlets. One source cited by Sky News said the number was likely to be in the low double digits.

Poundland operates close to 600 stores across the UK and Ireland and employs around 12,000 people. Its owner, investment firm Gordon Brothers, is considering either a sale of the business as a going concern or a break-up that could involve insolvency proceedings.

Other potential buyers include supermarket chain Lidl, The Range and Poundstretcher, which is owned by Fortress Investment Group. These retailers are understood to be interested in acquiring varying numbers of stores rather than the entire business.

At least two offers to acquire Poundland as a going concern have been submitted, with Ireland's Martin Property Group reportedly the preferred bidder of Poundland's management team. According to Sky News, its proposal would involve paying a nominal sum for the company's equity while repaying existing loans and injecting millions of pounds into a turnaround plan.

Martin Property Group is understood to have committed to retaining Poundland's existing store network and workforce. Its proposal would also preserve a distribution centre in the Makerfield constituency, represented by Andy Burnham.

Gordon Brothers is reportedly seeking full repayment of a £30 million shareholder loan as part of any sale. The investment firm acquired Poundland from Pepco Group in June 2025 for £1, but the retailer has continued to face pressure from inflation, rising costs and competition following changes to its product range.

Gordon Brothers appointed three restructuring specialists to Poundland's board last week to oversee decisions about the company's future. The owner has been seeking to secure an agreement by the end of October, ahead of the crucial Christmas trading period.

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