Poundland’s management team is in advanced talks with a financial backer to bid for the retailer, in a move that could preserve up to 11,000 jobs as its owners seek a buyer.

The proposed management buyout is being led by Andy Bond, the former Asda boss who ran Poundland from 2016 before becoming chief executive of its former parent Pepco Group, while current managing director Barry Williams is understood to be part of the team.

Gordon Brothers, which bought Poundland from Pepco for £1 in June 2025, appointed Alvarez & Marsal (A&M) last month to oversee a sale of the discount retailer at a reported price of £30m. The process has attracted bids for the whole business and significant parts of its 600-store estate.

City AM reported that investment firms Fortress and Modella Capital are among the parties considering bids, with Fortress owning rival discount retailer Poundstretcher and Modella owning Hobbycraft and TG Jones. Neither company is involved in the management-backed proposal.

The sale process has raised concerns about a potential break-up of Poundland, with sources cited by the Guardian saying few bids were expected to cover the entire business. One source told the newspaper it would be a “great shame” if an offer allowing Poundland to continue trading was not considered.

The retailer’s financial performance has deteriorated sharply, with Poundland reporting an £85 million pre-tax loss for the year to September 2025, compared with a £45 million loss the previous year. Sales fell 12 per cent to £1.5 billion over the period.

Poundland said last week that trading had since improved, reporting 3.3 per cent like-for-like sales growth over the latest three-month period and forecasting pre-tax earnings around £80m higher than the previous year. Williams said the return to growth was the “clearest signal yet” that the business was recovering.

The company has more than £30 million in cash and access to borrowing, while Gordon Brothers put in place a £95 million lending facility, of which £50m had been used, according to Poundland. Gordon Brothers previously committed £80 million to the retailer as part of a rescue package.

Poundland has closed about 149 stores and cut 2,200 jobs since the rescue restructuring began, while refocusing on its £1 proposition and relaunching its Pep & Co clothing range. The ongoing sale has reportedly led an insurer to withdraw credit cover from some suppliers, potentially creating difficulties securing goods.

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