Poundland owner Gordon Brothers is exploring a sale of the discount chain just over a year after acquiring the business for a nominal €1.
The investment firm is understood to be in talks with advisers about launching an auction of Poundland, which currently operates around 600 stores and employs approximately 12,000 people across Britain.
No final decision has been made, although advisers could be appointed within days to oversee a potential sale process, Sky News reported.
A fresh change of ownership would come little more than a year after Gordon Brothers acquired Poundland from Pepco Group in July 2025, following months of uncertainty surrounding the discounter’s future.
The takeover was followed by a major restructuring programme that resulted in the closure of scores of stores, with as many as 200 locations originally earmarked to shut.
Poundland had operated more than 800 shops and employed over 14,000 people immediately before the restructuring.
However, the retailer’s performance is understood to have stabilised in recent months, with a trading update expected shortly.
Managing director Barry Williams said in January that Poundland was “on the right track” following its near collapse, as the retailer refocused its proposition around lower prices and a simpler offer.
The turnaround has included bringing thousands of products back to its signature £1 price point, alongside a renewed focus on clothing, homewares and its core grocery ranges.
A Poundland spokesman said the retailer had made “very significant progress” over the past year through a recovery plan centred on simpler pricing and better value for shoppers.
The company declined to comment on talks with advisers or the prospect of another sale.
Potential bidders are expected to include turnaround investors, private equity firms and other retail industry players.
Gordon Brothers, which also owns fashion brands LK Bennett and Radley, has not commented on the potential sale.
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