Gordon Brothers is reportedly preparing to appoint advisers for a potential auction of Poundland, just over a year after buying the discount retailer for £1 and overseeing a restructuring that closed as many as 200 stores.

The Boston-based investment firm is in talks with advisers about a sale process for Poundland, according to Sky News, with a final decision yet to be made but an auction considered likely. Advisers are expected to be appointed within days.

Poundland currently operates about 600 UK shops and employs around 12,000 people, after its High Court-approved restructuring last year led to the closure of up to 200 locations. The retailer had warned before the restructuring that it was days from collapse.

Poundland reported a £79 million pre-tax loss for the year to September 2024, while revenue fell 2.5 per cent to £1.8 billion. Its directors attributed the loss to changes to its product range under former owner Pepco Group, alongside difficult economic and retail conditions.

Gordon Brothers acquired Poundland from Warsaw-listed Pepco in July 2025 for £1. The potential sale comes as the retailer's performance is understood to have stabilised, with a trading update expected in the coming days, according to Sky News.

Barry Williams, Poundland managing director, said in January that the business had made “significant progress” but still had “much to do” as it worked to restore its offer. He said cost reductions had created a platform for growth, while the company's 2026 focus would be on delivering “price simplicity” across clothing, homewares and grocery.

Poundland said its recovery plan had created “simpler, better value for customers” and restored thousands of products to its £1 price point. The company declined to comment on the potential sale, while Gordon Brothers did not respond to requests for comment.

Gordon Brothers has not publicly given a reason for considering a sale so soon after the takeover. The investment firm also owns fashion brands including LK Bennett and Radley and has pursued a broader strategy of acquiring, restructuring and disposing of assets.

Poundland's latest ownership change would follow a period of significant disruption for the retailer, which had more than 14,000 employees before its restructuring and has faced pressure from weak consumer confidence and rising operating costs.

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