Poundland sold for £1 and dozens of shops are set to close – London Business News | London Wallet

Poundland has been sold for £1 to Gordon Brothers who are an investment company after being put up for sale following a sharp decline in sales.

Polish firm Pepco Group announced the sale of Poundland on Thursday and more than 800 stores, and 16,000 employees have been transferred to Gordon Brothers.

As part of the deal the chain store will undergo restructuring which will go through to the High Court and creditors said the details will be sent to company creditors.

Stephan Borchert, Pepco Group chief executive, said,“This transaction will strongly support our accelerated value creation programme by simplifying the group and focusing on our successful Pepco business.

“Poundland remains a key player in UK discount retail, with millions of customers annually and a well-loved brand and proposition.

“We want to sincerely thank all the Poundland team for their ongoing commitment and contribution to the group and wish Barry Williams and his team all the best for the future.”

The chief executive of Poundland, said, “We welcome Gordon Brothers as we focus on returning Poundland to its core heritage category strengths and place as an essential business to UK households.

“We look forward to working with our supplier base to ensure we continue providing exceptional value to budget-conscious consumers in the UK.”

Mark Newton-Jones, head of Europe, the Middle East and Africa at Gordon Brothers, said, “We believe Poundland is an essential retailer serving UK consumers and plays an important role on the high street.”