Poundland's current owner is racing to complete a sale of the discount chain ahead of the crucial Christmas trading period, with an auction process reportedly set to get underway imminently.

Gordon Brothers, which acquired the retailer for £1 last June, has appointed advisors Alvarez & Marsal (A&M) to manage the sale process. Sources told Sky News that A&M wants to secure a sale before the end of October, which would allow a deal to be completed before the festive rush.

The urgency reflects the importance of the Christmas season for retailers, which typically accounts for a significant portion of annual sales. First bids for Poundland are expected to be tabled early next month, according to reports.

Interest in the chain has already been registered, with Modella Capital — the owner of Hobbycraft and TGJones — among those said to have made an approach. The Boston-based investment firm Gordon Brothers has reportedly received multiple approaches from parties interested in acquiring the business.

A year of transition

Poundland's journey under Gordon Brothers has been marked by significant restructuring. The sale process follows a challenging period for the retailer, which closed more than 100 locations since June 2025 as part of a major reorganisation.

The chain has shrunk from approximately 800 sites prior to the takeover to around 651 stores today, with the loss of roughly 200 stores. The company employs approximately 12,000 people across the UK.

The restructuring has taken a toll on the company's finances. Poundland reported an £85 million pre-tax loss in the year to September, nearly double the £45 million shortfall recorded in the prior year. Sales fell 12 percent to £1.5 billion.

Headcount was reduced by 11 percent to 14,417 during the same period. The company's directors attributed the widened losses to "difficult trading conditions" and a "significant programme of restructuring," according to the retailer's latest accounts accessed by City M.

The retailer has described 2025 as a "reset moment" for the business. In a statement accompanying its financial results, the company said the restructuring "led to a challenging set of numbers seen in these statutory accounts, but it has positioned the company as well as it could be in terms of its turnaround."

Back to basics

The sale of the chain by Polish-listed Pepco has seen Poundland return to its value roots. Under Gordon Brothers' ownership, the retailer has increased the number of products sold for £1, and axed its loyalty programme, Poundland Perks, last September.

Barry Williams, managing director of Poundland, expressed confidence in January that the business was "on the right track" after previously coming close to collapse. At the time, he said the company's focus for the year would be on "delivering the kind of ranges and price simplicity customers want right across the store."

More recently, Williams struck a bullish tone on the company's progress, saying: "Rebuilding trust with customers takes time, but we're making very significant progress as we deliver the ranges and price simplicity they demand of us."

A spokesperson for Poundland said: "We're not going to be distracted from the successful recovery we're putting in place through good old-fashioned back-to-basics retailing."

The company has also shown signs of stabilisation, recently opening its first new store in two years. Gordon Brothers had been considering launching an auction process for the brand last month, and sources indicate the company expects significant interest from across the retail sector.

The accelerated timeline for a sale, intended to be completed before the end of October, appears designed to provide clarity for the business and its employees during what is traditionally the most important period for retail sales. Gordon Brothers has been approached for comment.