Poundland overstated its revenues by £60m in the run-up to its £1 sale to Gordon Brothers, newly filed accounts have revealed.
A review carried out as part of the discount retailer’s takeover uncovered a series of accounting errors, including sales between its UK business and operations in the Republic of Ireland and Isle of Man being incorrectly counted as external revenue, The Times reported.
The adjustment related to Poundland’s financial year ending September 2024 and did not affect its reported profit.
The review also identified other balance sheet issues, including around £17m of equipment that could not be verified and errors relating to lease liabilities which reduced net assets by £32.5m.
Poundland’s latest accounts, filed with Companies House on 20 August, show its struggles continued into its following financial year.
Sales fell from around £1.8bn to £1.6bn in the year to September 2025, while the discounter posted a pre-tax loss of £85.2m.
The results cover a turbulent period for Poundland, which was sold by former owner Pepco Group to turnaround investor Gordon Brothers for a nominal £1 in June last year.
The deal was followed by a sweeping restructuring programme, which saw scores of stores close and more than 2,000 jobs cut as the retailer sought to stabilise the business.
Poundland’s restructuring plan was sanctioned by the High Court in August 2025, with Pepco providing an overdraft facility of up to £30m and retaining a minority interest in the business.
The latest filings come as it was revealed last week that Gordon Brothers is exploring a potential sale of Poundland just over a year after acquiring the chain.
The investment firm is understood to be speaking with advisers about a possible auction, although no final decision has been made.
Poundland currently operates around 600 stores and employs approximately 12,000 people across Britain.
It has insisted it has made “very significant progress” under its turnaround plan, which has focused on simpler pricing, returning thousands of products to its signature £1 price point and rebuilding its core grocery, clothing and homewares offer.
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