Gordon Brothers buys Poundland from Pepco Group for a nominal £1

In early June 2025, Pepco Group, the European retailer that had owned Poundland since 2016, agreed to sell the UK discount chain to Gordon Brothers, a US firm that specialises in restructuring and retail turnarounds. The price was a nominal £1.

Poundland had been losing money for some time, weighed down by rising costs, weak sales and a large store estate with expensive leases. Pepco had already been trying to offload the business, and the sale let it remove a heavy drag on its wider group.

The takeover was tied to a restructuring plan, a court-approved process in England that lets a struggling company bind creditors, including landlords, to new terms. The plan aimed to cut rents and close a number of unprofitable stores, while keeping most of the roughly 700 shops trading and protecting jobs where possible.

The deal mattered because it marked the end of Pepco's ownership and handed Poundland's future to a specialist in distressed retail. It also set the stage for later disputes over the chain's finances and whether a longer-term buyer could be found.