Gordon Brothers considers splitting Poundland and Dealz sales

Gordon Brothers, the US investment firm that owns discount retailer Poundland, is considering selling the UK chain and its Irish sister business Dealz in two separate transactions, having initially planned to offload both together.

The restructuring specialist launched a sale process at the start of September, just over a year after acquiring Poundland and Dealz from Pepco Group for a nominal £1. It is understood to be weighing a break-up of the two businesses after receiving significant interest in Dealz from Irish retailers and private investors.

According to the Financial Times, Gordon Brothers is seeking around £30 million from potential buyers for the chain it bought for less than £1 last year. Poundland operates about 600 stores in the UK, while Dealz trades from 70 sites in the Republic of Ireland.

A joint sale to a single bidder remains an option, and no transaction has been agreed. Poundland could alternatively be sold to its current management through a buyout, an outcome that has been raised repeatedly during the process.

The interest in Dealz could allow Gordon Brothers to market the Irish chain separately rather than require a buyer of Poundland to take on both operations. Parties interested in Dealz are said to include traditional retailers and high-net-worth individuals.

In the UK, Poundland has drawn approaches from several established retail names and a number of asset managers. Fortress Investment Group, the New York-based owner of Poundstretcher, was reported earlier in September to be in early-stage talks over a possible takeover, though there was no certainty it would submit an offer.

Modella Capital, which owns TGJones and Hobbycraft, has also been approached about its interest in Poundland. The investment firm completed a separate acquisition of the Dealz business in Poland from Pepco Group in July.

Gordon Brothers appointed advisers at Alvarez & Marsal to oversee the auction, with formal bids expected to be drawn up by the end of September. The firm is aiming to complete a deal before the Christmas trading period.
Since acquiring the business, Gordon Brothers has funded a wide-ranging restructuring process, making as much as £80 million available for the turnaround. The programme included nearly 150 store closures and around 2,200 job losses. Poundland also simplified its grocery pricing around £1, £2 and £3 price points and set about rebuilding its PEP&CO clothing range.

The retailer has faced a difficult period. In the year to September 2025, it reported a pre-tax loss of about £85 million, wider than the previous year, as revenue fell to around £1.6 billion. Directors attributed the figures to challenging trading conditions and the scale of the restructuring, describing 2025 as a reset moment for the business.

Trading has since improved across the combined Poundland and Dealz operation. Like-for-like sales grew 3.3% on an unadjusted basis in the fourth quarter of the financial year, rising to 6.4% on an adjusted basis. Gordon Brothers expects earnings to improve by around £80 million against the prior year, though it did not disclose an absolute forecast.

Barry Williams, Managing Director of Poundland, 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."
Shaun Wills, Chief Financial Officer of Poundland, who joined in July, said: "The fundamentals of this business are strong and it's clear that the simplification strategy is starting to deliver positive and sustainable results."

Previous stories:
Opportunities could abound with Poundstretcher close to administration (11 May 2026)

Poundland set for one pound sale as Gordon Brothers emerges as frontrunner

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