Poundland has taken over the restructuring and investment company Gordon Brothers. The British budget retailer receives a financial injection of £ 80 million (94 million euros). This is intended to support one of all three parties, including the former owner Pepco Group, agreed “planned restructuring”. Details on this plan will be announced by Poundland “at a given time”.
In a press release, Gordon Brothers said that the financing was used to support Poundland’s “future strategy”, which is currently being managed by Managing Director Barry Williams. Williams welcomed Gordon Brothers: Poundland concentrated to “attribute the company to its traditional core strengths”. Williams continued: “We look forward to working with our suppliers: Inside, to ensure that we continue to offer price -conscious consumers: inside in the UK continues to offer extraordinary added value.”
Williams, who took over the management again at the beginning of the year, will continue to lead the company under the new owner. Pepco is expected to keep a minority stake in Poundland. This depends on the planned restructuring of the retailer, which was approved by the High Court in England. In return, Gordon Brothers becomes owner of all Poundland branches with 16,000 employees: inside, assets and liabilities.
Remembered restructuring comes into force
In a separate press release, Pepco, who also owns the European Discount chain Dealz and the retailer Pepco of the same name, explains that the sale reflects its own “strategy for simplifying the group structure and increasing the Shareholder Value”. The retailer had burdened finances last year. Pepco continued that the transaction would improve sales growth, profitability and margins in the group.
In the last financial year, Poundland contributed 33 percent to Pepco’s turnover, but only five percent of the result of interest, taxes, taxes and depreciation (EBITDA). In the first half of the current financial year 2024/25, Poundland of the Pepco Group caused further problems. In the six months, sales at Poundland decreased by 6.5 percent to 985 million euros.
The shares in Poundland were sold to Gordon Brothers for a “nominal consideration”. Pepco’s secured loans in the amount of £ 30 million and other insecuated loans between Pepco and Poundland remain. After completing the planned restructuring, another overdraft loan of up to £ 30 million is to be set up between the two parties to support the transaction.
Gordon Brothers was involved in the renovation or restructuring of a number of fashion brands, including Laura Ashley, Orsay and Bench. The company provides short and long-term capital for companies that are changing and also offers expertise for management teams that lead such strategies.
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