Poundland set to be sold for £1 as future of 825 stores on UK high streets revealed

, a staple of the is set to be sold to investors next week - for just £1. The bargain store, owned by Warsaw-listed retailer Pepco, has 825 shops around the UK and is set to be put before investors on Tuesday.

Several investors with histories in turning around the fortunes of huge businesses have been linked with making an offer for the retailer which has endured turbulent trading of late. The company which employs 16,000 people made £1.6 billion in sales last year but saw like for like sales fall 7.3% when the income of newly opened stores was taken out of the equation. Following the results, Pepco said faced "a more difficult sales environment and consumer backdrop in the UK, alongside margin pressure and an increasingly higher operating cost environment".

It also pledged to increase the number of products it sells for a pound after market conditions saw range of prices from 50p to £5.

Pepco put up for sale in March, pointing to changes announced in , notably tax hikes and increased , as playing a role in the decision.

At the time, Pepco said in a statement: "From April 2025, the UK Government's additional tax changes announced in the Budget will also add further pressure to Poundland's cost base."

Several so called "turnaround investors" are believed to be interested in purchasing the retailer, with Gordon Brothers, the former owner of Laura Ashley, emerging as one of the favourites.

Other potential suitors include Modella Capital, which recently bought WH Smith's high street division; Alteri, owner of Bensons for Beds; and Hilco Capital, which owns Lakeland, according to the Times.

The company is expected to be sold for a nominal fee of a pound, a practise common with businesses where it is believed that the purchaser will have to invest heavily to turn around the company's fortunes.

It is believed that the company owes significant debt to its parent company.

Other bargain retailers such as B&M, Home Bargains and The Range have faced similar difficulties in the face of challenging market conditions but have traded better than .

In the last two years, Poundland transitioned to Pepco-sourced clothing, but the move to those replacement ranges was challenging and impacted sales.

A source close to Pepco Group insisted that no final decision had been made in relation to the future of the brand.

They said: "As announced at the Capital Markets Day on 6 March, Pepco Group is moving away from FMCG to create a simpler business focused on clothing and general merchandise, and is actively exploring separation options for Poundland, including a potential sale, from the Group.

"With Barry Williams' re-appointment as Managing Director, Poundland is executing a turnaround programme to get the business back on track, focusing on its core heritage strengths, and a simpler pricing proposition and customer offer."

The company had thrived under the financial crisis as consumers with reduced personal expenditure looked to get value for their money on essential items.

was founded in 1990 by David Dodd and Steve Smith who aimed to replicate the success of one dollar stores in the United States.

They eventually sold the business to Advent International, the private equity giant for £50 million in 2002.