Poundland bosses in battle with owner over retailer’s future
Poundland bosses in battle with owner over retailer’s future
Luke BarrThu, October 1, 2026 at 12:07 PM UTC
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Poundland was unexpectedly put up for sale in August - Dominic Lipinski/PA
Bosses at Poundland have appointed advisers to spearhead a possible management buyout in a challenge to the chain’s owners.
Management has drafted in consultants from Interpath to work on a potential bid as part of an increasingly fraught battle with Poundland’s owners over the company’s future.
Gordon Brothers plunged the business into turmoil by unexpectedly putting it up for sale in August. The move raised fears that Poundland could be tipped into administration, prompting insurers to stop offering new cover to suppliers.
Alvarez and Marsal has been hired by Gordon Brothers to oversee the sale process. Interpath’s appointment highlights a growing split between management and Poundland’s owners.
Barry Williams, the managing director, has partnered with Andy Bond, the former Asda boss, to lead a proposed management buyout, with an offer submitted to Gordon Brothers earlier this week.
Their bid does not propose any store closures and is believed to be fully financed by an unnamed UK backer.
It is thought that the offer is unlikely to meet the £30m price tag Gordon Brothers has put on Poundland, a business it acquired for just £1 last summer.
However, industry sources said it had the support of Pepco, Poundland’s former owner, which still holds a 30pc stake in the retailer.
The offer from management rivals separate bids from other suitors, which could include Poundstretcher owner Fortress Investment Group and Modella Capital, which owns TG Jones.
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Some rival retailers are understood to be hoping to cherry-pick Poundland’s best stores – a move that would lead to the company being broken up. Poundland employs 11,000 people across 600 stores.
Insurers halt vital cover
The Telegraph revealed last week that management had been scrambling to reassure suppliers after Gordon Brothers announced a quickfire sale process last month.
Alvarez and Marsal’s appointment fuelled suspicion that Gordon Brothers was planning to put the company into administration and make a quick profit by offloading whatever remained of its stock.
Though Gordon Brothers primarily invests in highly distressed companies, it also owns a liquidation business that made money from closing about 200 Poundland stores last year.
Uncertainty over the retailer’s future has led to insurers no longer offering new cover to suppliers of Poundland. One insurer has also withdrawn cover altogether.
Poundland made pre-tax losses of £85m in the 12 months ending Sept 2025. Accounts revealed a cash pile of more than £30m and several sources of borrowing.
In trading figures released last week, management said performance at Poundland was improving.
A spokesman said: “Profitability is on a strongly improving trajectory with expected pre-tax earnings around £80m better than last year.”
Shaun Wills, the finance chief, said: “The fundamentals of this business are strong.”
Poundland and Gordon Brothers were contacted for comment.
Source: “AOL Money”
