Poundland owner picks A&M to advise on auction of discount chain

Poundland's owner has picked advisers to handle a sale of the discount chain just over a year after it last changed hands.

Sky News has learnt that Gordon Brothers, the retail investor which also owns LK Bennett and Radley, has hired Alvarez & Marsal (A&M) to run an auction of the 600-store business.

The appointment of A&M follows a beauty parade of advisers held in the last week, and is expected to result in a sale process being launched in the autumn.

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Gordon Brothers bought Poundland from Pepco Group for a token €1 in July 2025 in a deal which led to the closure of about 200 stores.

Poundland still trades from roughly 600 shops and employs about 12,000 people across Britain.

The prospect of another change of ownership will cast more uncertainty over Poundland's future, even as people close to the business insist that its financial performance has enjoyed an upturn since last year's restructuring.

Retail executives have suggested that bidders were likely to include other turnaround funds, private equity firms or other industry players.

In January, Poundland managing director Barry Williams said the business was "on the right track" months after coming close to collapse.

"While there's been significant progress as we re-focus and re-energise the business with lower prices and a sharper offer, we know we still have much to do," he said.

Poundland serves millions of customers each yar, and prior to its restructuring employed more than 14,000 people.

It is unclear why Poundland's new owner was keen on such a swift exit from its investment if the business had begun to improve its performance.

The British high street remains caught in the crossfire of shaky consumer confidence and rising cost burdens, the latter of which has been exacerbated by government tax hikes.

This year, chains including TGJones - formerly WHSmith - have undergone emergency revamps aimed at salvaging their future.

Poundland and A&M declined to comment.

(c) Sky News 2026: Poundland owner picks A&M to advise on auction of discount chain