1000’s of jobs are in danger after low cost excessive road chain Poundland was bought – with dozens of outlets anticipated to close.
Poundland has been bought for a headline determine of €1 to funding agency and former Laura Ashley house owners Gordon Brothers, confirming Sky Information reporting.
Its earlier house owners, the Poland-based Pepco Group, nevertheless, are to be repaid tens of thousands and thousands of kilos as a part of the sale.
Poundland employs roughly 16,000 folks throughout an property of over 800 retailers within the UK and Eire.
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Round 100 shops are anticipated to shut, and lease critiques are additionally anticipated to be negotiated with Poundland landlords.
The chain, recognized for promoting merchandise for £1, was put available on the market earlier this 12 months after a downturn in buying and selling. Employers’ tax hikes introduced by Chancellor Rachel Reeves within the November price range elevated the monetary stress on excessive road retailers.
As a part of the deal, a restructuring plan requiring Excessive Court docket approval will happen. Particulars of that restructuring will likely be communicated in “due course”, house owners Pepco mentioned.
It should retain a minority stake in Poundland.
Pepco mentioned the deal would assist it shift away from meals and drinks, enhance its income progress and enhance its profitability
Stephan Borchert, Pepco Group’s chief govt, mentioned: “This transaction will strongly assist our accelerated worth creation programme by simplifying the group and specializing in our profitable Pepco enterprise.
“Poundland remains a key player in UK discount retail, with millions of customers annually and a well-loved brand and proposition.”
