Poundland may very well be bought for simply £1 as way forward for 784 shops stays unclear, professional says
Owners of budget retailer Poundland, which has more than 780 stores, is currently exploring ‘all options’ when it comes to the possible avenues for the brands future
Cheap high street brand Poundland could be sold… for just £1. Earlier this month it was reported that the budget retailer was bringing in advisors to oversee a sale of the entire business, and more than 784 stores.
Teneo, the advisory firm, had reportedly been called in to manage the chain’s sale. This news followed Pepco Group (Poundland’s parent crew) revealing they’re eyeing up “all strategic options”.
And now it appears as if a sale for just the ironic price of £1 could be on the cards. According to several experts speaking to The Grocer, it would mean someone paying the paltry sum but taking on all of the companies debts.
AJ Bell investment director Russ Mould said: “Some analysts are suggesting Poundland could be available for sale for £1, although there would then be lease costs and other potential liabilities on top of that nominal purchase price.
“According to the last annual results, Poundland generated €2bn of sales but last week’s capital markets day presentation said it lost €3m at the operating level, including leasing costs. The first thing, therefore, that Poundland can do to make itself more attractive is make more (or some) money.
“It is reportedly still cash rich, even if wider volatility means it is proving harder than before to effect smooth exits from purchases and realise gains on their initial investment. The possibility that Boots may also be put up for sale at some stage by its new owner, Sycamore, could also muddy the picture.”
No official comment has been made by Pepco officials, however, and news of the potential sale has gone quiet in recent weeks.
The Daily Star has reached out for an update, but the last comment came on March 6 which said that advisers were being brought in to “support” the company with “actively exploring separation options”.
Although seemingly wanting to shine a decent light on the company if a sale was the option, a spokesman said in February that it was a “strong brand”.
They explained: “We serve millions of customers every week and had around two billion euros (£1.67 billion) in annual turnover in financial year 2024, but it is also operating in an increasingly challenging UK retail landscape that is only intensifying.
“From April 2025, the UK Government’s additional tax changes announced in the Budget will also add further pressure to Poundland’s cost base. Therefore the board is actively evaluating all strategic options to separate Poundland from group during financial year 2025, including a potential sale.”
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