Latest news with #StephanBorchert
The Guardian
12-06-2025
- Business
- The Guardian
Poundland sold for £1 with dozens of store closures expected
The discount retail chain Poundland is expected to close dozens of its stores after it was sold to the investment company Gordon Brothers for £1. Poundland, which has more than 800 outlets in the UK and employs about 16,000 people, was put up for sale by its owners, Pepco Group, in March as a result of 'challenging trading conditions'. The US investment firm Gordon Brothers, former owner of Laura Ashley, said it would invest up to £80m in Poundland to help turn the business around. As part of the deal, Poundland faces a restructuring plan that is expected to include a swath of store closures, putting thousands of jobs at risk. The company is also thought to be looking to slash its rent bill. Poundland said the details would be communicated 'in due course'. Poland-based Pepco, which bought Poundland in 2016, had been looking at options for the outlet since late last year in order to focus on its more profitable Pepco brand, at a time when Poundland was facing tough competition from other discount chains and in the face of increased wage costs. Stephan Borchert, the chief executive of Pepco Group, said the sale 'marks an important milestone in our strategic plan to move away from FMCG [fast-moving consumer goods] and focus predominantly on Pepco, our higher margin clothing and general merchandise business'. Pepco reportedly received interest in Poundland from others, including the restructuring specialist Hilco and Modella Capital, the new owners of WH Smith's high street business. However Pepco said last month that any sale of Poundland would not result in 'major proceeds' for investors as Poundland might not make a profit in the last financial year. Even at a time when consumers are watching their spending, budget chains such as Poundland have been having a particularly tough time as a result of growing competition from supermarkets such as Tesco, Aldi and Lidl, as well as the expansion of rival groups such as Savers, The Range and Home Bargains. Discount retailers such as Poundland have slim profit margins, giving them little room to absorb extra costs such as the increase in national insurance contributions, which took effect in April, at the same time that sales growth is slowing as UK households rein in their spending. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Poundland was founded in 1990 with its first store in Burton upon Trent. It became popular for offering value products ranging from food and cosmetics to homeware and stationery, with all items originally priced at £1. It moved away from its £1 model in 2019, bringing in what it called a new pricing structure, although in recent months it has tried to win back customers by increasing the number of £1 products it sells.
Yahoo
12-06-2025
- Business
- Yahoo
Poundland sold for £1 with dozens of store closures expected
The discount retail chain Poundland is expected to close dozens of its stores after it was sold to the investment company Gordon Brothers for £1. Poundland, which has more than 800 outlets in the UK and employs about 16,000 people, was put up for sale by its owners, Pepco Group, in March as a result of 'challenging trading conditions'. The US investment firm Gordon Brothers, former owner of Laura Ashley, said it would invest up to £80m in Poundland to help turn the business around. As part of the deal, Poundland faces a restructuring plan that is expected to include a swath of store closures, putting thousands of jobs at risk. The company is also thought to be looking to slash its rent bill. Poundland said the details would be communicated 'in due course'. Poland-based Pepco, which bought Poundland in 2016, had been looking at options for the outlet since late last year in order to focus on its more profitable Pepco brand, at a time when Poundland was facing tough competition from other discount chains and in the face of increased wage costs. Stephan Borchert, the chief executive of Pepco Group, said the sale 'marks an important milestone in our strategic plan to move away from FMCG [fast-moving consumer goods] and focus predominantly on Pepco, our higher margin clothing and general merchandise business'. Pepco reportedly received interest in Poundland from others, including the restructuring specialist Hilco and Modella Capital, the new owners of WH Smith's high street business. However Pepco said last month that any sale of Poundland would not result in 'major proceeds' for investors as Poundland might not make a profit in the last financial year. Even at a time when consumers are watching their spending, budget chains such as Poundland have been having a particularly tough time as a result of growing competition from supermarkets such as Tesco, Aldi and Lidl, as well as the expansion of rival groups such as Savers, The Range and Home Bargains. Discount retailers such as Poundland have slim profit margins, giving them little room to absorb extra costs such as the increase in national insurance contributions, which took effect in April, at the same time that sales growth is slowing as UK households rein in their spending. Poundland was founded in 1990 with its first store in Burton upon Trent. It became popular for offering value products ranging from food and cosmetics to homeware and stationery, with all items originally priced at £1. It moved away from its £1 model in 2019, bringing in what it called a new pricing structure, although in recent months it has tried to win back customers by increasing the number of £1 products it sells.
Fashion Network
12-06-2025
- Business
- Fashion Network
Poundland sold to Gordon Brothers for under £1
Pepco Group has completed the sale of UK value chain Poundland with Gordon Brothers the new owner, as expected. Pepco said the transaction enables the group to focus on the higher-growth and higher-margin eponymous business. And for Poundland it's a lifeline for a business that has been struggling for a while and making massive losses, although it's a lifeline that will involve a great deal of pain as up to 200 store closures (out of its 800-strong total estate) and a large number of job losses are expected. The chain has actually been sold to 1903 Peach Bidco Limited, a newly-formed company established by certain affiliates of Gordon Brothers International. The former owner of Laura Ashley is expected to pump up to £80 million into the business and will also launch a restructuring process. Pepco explained that the shares in Poundland have been sold to Gordon Brothers for a 'nominal consideration, with Pepco's secured loan of £30 million and certain unsecured loans remaining in place between Pepco Group and Poundland, as well as an overdraft of up to £30m to be put in place between Pepco Group and Poundland upon completion of the proposed restructuring in support of the transaction'. What does that mean in practice? Poundland has basically been sold for €1, or less that £1. It will continue to be led by Barry Williams, currently managing director of Poundland, and will continue to operate under that brand in Britain and the Dealz brand in the Isle of Man and Republic of Ireland. Poundland has been a drain on Pepco for some time and despite its ultra-value offering is facing a tough UK market. With wafer-thin margins, it's not well placed to absorb higher costs (such as rising National Insurance contributions). There have also been newspaper reports of unpaid business rates bills. But being independent of Pepco could be a good thing if it allows it to more closely tailor its product offer to UK tastes. Pepco Group, which acquired Poundland in 2016, can now get back to its main focus on its core chain and CEO Stephan Borchert said: 'The agreed sale of Poundland marks an important milestone in our strategic plan to move away from FMCG and focus predominantly on Pepco, our higher-margin clothing and general merchandise business. 'This transaction will strongly support our accelerated value creation programme. I am confident that Pepco has the right foundations to be one of Europe's most successful discount retailers, delivering customer satisfaction, profitable growth and shareholder value.' But he added: 'Poundland remains a key player in UK discount retail, with millions of customers annually and a well-loved brand and proposition.'
Fashion Network
12-06-2025
- Business
- Fashion Network
Poundland sold to Gordon Brothers for under £1
Pepco Group has completed the sale of UK value chain Poundland with Gordon Brothers the new owner, as expected. Pepco said the transaction enables the group to focus on the higher-growth and higher-margin eponymous business. And for Poundland it's a lifeline for a business that has been struggling for a while and making massive losses, although it's a lifeline that will involve a great deal of pain as up to 200 store closures (out of its 800-strong total estate) and a large number of job losses are expected. The chain has actually been sold to 1903 Peach Bidco Limited, a newly-formed company established by certain affiliates of Gordon Brothers International. The former owner of Laura Ashley is expected to pump up to £80 million into the business and will also launch a restructuring process. Pepco explained that the shares in Poundland have been sold to Gordon Brothers for a 'nominal consideration, with Pepco's secured loan of £30 million and certain unsecured loans remaining in place between Pepco Group and Poundland, as well as an overdraft of up to £30m to be put in place between Pepco Group and Poundland upon completion of the proposed restructuring in support of the transaction'. What does that mean in practice? Poundland has basically been sold for €1, or less that £1. It will continue to be led by Barry Williams, currently managing director of Poundland, and will continue to operate under that brand in Britain and the Dealz brand in the Isle of Man and Republic of Ireland. Poundland has been a drain on Pepco for some time and despite its ultra-value offering is facing a tough UK market. With wafer-thin margins, it's not well placed to absorb higher costs (such as rising National Insurance contributions). There have also been newspaper reports of unpaid business rates bills. But being independent of Pepco could be a good thing if it allows it to more closely tailor its product offer to UK tastes. Pepco Group, which acquired Poundland in 2016, can now get back to its main focus on its core chain and CEO Stephan Borchert said: 'The agreed sale of Poundland marks an important milestone in our strategic plan to move away from FMCG and focus predominantly on Pepco, our higher-margin clothing and general merchandise business. 'This transaction will strongly support our accelerated value creation programme. I am confident that Pepco has the right foundations to be one of Europe's most successful discount retailers, delivering customer satisfaction, profitable growth and shareholder value.' But he added: 'Poundland remains a key player in UK discount retail, with millions of customers annually and a well-loved brand and proposition.'
Fashion Network
12-06-2025
- Business
- Fashion Network
Poundland sold to Gordon Brothers for under £1
Pepco Group has completed the sale of UK value chain Poundland with Gordon Brothers the new owner, as expected. Pepco said the transaction enables the group to focus on the higher-growth and higher-margin eponymous business. And for Poundland it's a lifeline for a business that has been struggling for a while and making massive losses, although it's a lifeline that will involve a great deal of pain as up to 200 store closures (out of its 800-strong total estate) and a large number of job losses are expected. The chain has actually been sold to 1903 Peach Bidco Limited, a newly-formed company established by certain affiliates of Gordon Brothers International. The former owner of Laura Ashley is expected to pump up to £80 million into the business and will also launch a restructuring process. Pepco explained that the shares in Poundland have been sold to Gordon Brothers for a 'nominal consideration, with Pepco's secured loan of £30 million and certain unsecured loans remaining in place between Pepco Group and Poundland, as well as an overdraft of up to £30m to be put in place between Pepco Group and Poundland upon completion of the proposed restructuring in support of the transaction'. What does that mean in practice? Poundland has basically been sold for €1, or less that £1. It will continue to be led by Barry Williams, currently managing director of Poundland, and will continue to operate under that brand in Britain and the Dealz brand in the Isle of Man and Republic of Ireland. Poundland has been a drain on Pepco for some time and despite its ultra-value offering is facing a tough UK market. With wafer-thin margins, it's not well placed to absorb higher costs (such as rising National Insurance contributions). There have also been newspaper reports of unpaid business rates bills. But being independent of Pepco could be a good thing if it allows it to more closely tailor its product offer to UK tastes. Pepco Group, which acquired Poundland in 2016, can now get back to its main focus on its core chain and CEO Stephan Borchert said: 'The agreed sale of Poundland marks an important milestone in our strategic plan to move away from FMCG and focus predominantly on Pepco, our higher-margin clothing and general merchandise business. 'This transaction will strongly support our accelerated value creation programme. I am confident that Pepco has the right foundations to be one of Europe's most successful discount retailers, delivering customer satisfaction, profitable growth and shareholder value.' But he added: 'Poundland remains a key player in UK discount retail, with millions of customers annually and a well-loved brand and proposition.'
