Poundland owner could carve out Irish business in rush sale
Poundland’s owners are considering selling off the discount retailer and its Irish branch, Dealz, in two separate transactions, City AM has learned.
Gordon Brothers, which bought Poundland and Dealz only a year ago, is sounding out interest in the two retailers in hopes of completing a deal before the busy Christmas trading period.
This process kicked off at the start of September, but the US investment firm is now understood to be considering offloading Poundland and its Irish offshoot in separate deals.
Gordon Brothers initially planned to sell the two retailers in a single deal but are weighing up other options after receiving significant interest for Dealz from Irish-based retailers and investors.
Those parties interested in snapping up Dealz include traditional retail firms as well as a number of “high-net-worth individuals who see opportunity” in the company, according to a person close to the matter.
But they added that Gordon Brothers are still exploring options which would see Poundland and Dealz sold to the same bidder. Poundland could alternatively be sold to the company’s bosses as part of a management buyout (MBO), it is understood.
In the UK, Poundland is attracting interest from several “household retail names” as well as a number of asset managers, they added. Poundland operates 600 shops in the UK and 70 sites under the Dealz brand in the Republic of Ireland.
Poundland ‘making significant progress’
Gordon Brothers have appointed advisors Alvarez & Marsal to prepare a list of formal bids by the end of this month. The consultancy has been in discussions with potential bidders in recent weeks.
The discount retailer has faced a difficult period in recent years, which its current owners have blamed on a challenging economic environment and a drastic restructuring.
The firm fell to an £85m pre-tax loss in the year to September, nearly doubling its £45m shortfall in the prior year. The group’s sales slipped 12 per cent to £1.5bn. The company’s directors blamed its widening loss on “difficult trading conditions” and a “significant programme of restructuring”.
The retailer used 2025 as a “reset moment,” it said. “This led to a challenging set of numbers seen in these statutory accounts, but it has positioned the company as well as it could be in terms of its turnaround.”
But Gordon Brothers say Poundland has turned a corner since it bought the retailer for just £1 in July last year.
Barry Williams, Poundland’s managing director, said: “Rebuilding trust with customers takes time, but we’re making very significant progress as we deliver the ranges and price simplicity they demand of us.”
Poundland’s sale process was first reported by Sky News.
Gordon Brothers and Alvarez & Marsal declined to comment.