Poundland jobs at risk as takeover talks continue
Up to 12,000 Poundland jobs are at risk as owner Gordon Brothers weighs competing takeover proposals, with shopworkers’ union Usdaw warning the retailer could face administration.
Poundland, which operates around 600 stores across the UK and Ireland, confirmed its leadership team, including Managing Director Barry Williams and former Poundland and Asda executive Andy Bond, is working with Derry-based Martin Property Group on a potential management buyout.
A Poundland spokesperson described Martin Property Group as management’s “preferred partner,” though the company said it would work with any bidder able to deliver the best outcome for the business, employees and suppliers.
But uncertainty looms over the retailer’s future. On 12 October, Usdaw National Officer Bally Auluk warned that management’s proposals were being rejected and that the union had been unable to secure meetings with Gordon Brothers despite repeated attempts.
Martin Property Group is reportedly planning a solvent takeover aimed at keeping Poundland stores open and safeguarding its workforce. The deal could value equity at as little as £1, with outstanding loans repaid and millions invested in a turnaround effort.
Gordon Brothers is pushing for full repayment of a £30 million shareholder loan, complicating negotiations.
Other potential bidders said to be in the running include Fortress Investment Group, Modella Capital and Hilco Capital. Concerns remain that Martin Property Group may be the only bidder pursuing an acquisition without triggering insolvency.
Gordon Brothers aims to pick its preferred bidder as early as this week, with completion expected before the end of October. The company has also considered selling Poundland and its Dealz brand separately, according to reports.
Gordon Brothers acquired Poundland from Pepco Group for £1 in June 2025, followed by a High Court-approved restructuring that shuttered nearly 150 stores and cut roughly 2,200 jobs. Alvarez & Marsal was appointed in September to oversee the sale process.
Despite the ongoing ownership turmoil, it has shown signs of recovery. Unadjusted like-for-like sales rose 3.3% in the quarter ending 27 September. When excluding product categories dropped during restructuring, this climbed to 6.4%. Like-for-like sales grew 6.7% in September, and the retailer expects profitability to land at the upper end of its forecasts.
