High street discount chain Poundland is set for a “restructuring” process after it was sold to investment firm Gordon Brothers.
The parent firm, Pepco Group, which has owned the brand since 2016, said it has completed the sale of the business for a “nominal” fee.
It comes after an auction by Poland-based Pepco to sell Poundland after a sharp downturn in trading over the past year.
Poundland’s more than 800 stores and roughly 16,000 employees will be transferred to the ownership of Gordon Brothers, which owns brands including Laura Ashley, as a result.
However, as part of the deal, Poundland is set to undergo a restructuring plan.
Poundland said the details will be communicated “in due course”.
Stephan Borchert, Pepco Group chief executive, said: “This transaction will strongly support our accelerated value creation programme by simplifying the group and focusing on our successful Pepco business.”
The company had previously said it is looking to offload the brand amid a wider shift away from food and drinks, with a deal expected before the end of its financial year in September.
A number of investment firms and private equity groups were understood to be among those to have tabled proposals to buy the business since it was put on the market earlier this year.
