UK bargain store Poundland was founded in 1990 as a store where almost everything was sold for £1. Now, over 30 years later, Poundland has come full circle and was sold for one single pound, just like its namesake.
If you’ve ever been to a Dollar Store or Dollar Tree in the U.S., you’ve essentially been to Poundland. It’s a value store with a similar proposition, one that’s become harder and harder to stay true to as the value of currency decreases over time.
However, it has still remained popular enough to have hundreds of locations in the United Kingdom. But why did it sell for £1?
As it turns out, an American investment group has bought out the franchise and plans to completely re-structure their business model.
Why did Poundland get sold for just £1?
Investment group Gordon Brothers were the buyers, and the sale was made with the intention of giving this group the keys to bring Poundland into a better spot financially before the company goes under on its own.
The £1 price tag is to make it a legally binding sale and giving the Gordon Brothers as much elbow room to revive the franchise as possible. Declining revenue forced them to close 18 stores in 2025 alone, and this acquisition is expected to result in even more closures.
But the Gordon Brothers are putting up to £80 million on the line to revamp the brand, according to their press release. CEO Barry Williams is staying on in the transition and aiming to use that funding to “focus on returning Poundland to its core heritage category strengths and place as an essential business to UK households.”
Poundland was owned by Polish discount store chain Pepco as their means of expanding into the UK, and they’ve sold to a different investment group for the sake of not having to bear the financial burden of keeping the store alive.
Previously, Pepco products were marketed as being only available at Poundland, but this move gives them the ability to put products on other stores’ shelves without losing revenue at the stores they own.
“Pepco Group’s decision to divest Poundland is rooted in its ambition to simplify its structure and accelerate growth in its strongest categories and markets. This Transaction will create a cleaner, more agile business, enabling the Group to focus on expanding its core Pepco brand,” Pepco claimed.
So, despite a massive franchise like Poundland selling for such a low price, there are reasons it makes sense for both sides.
