Poundland sales are reportedly surging, even as the discount retailer’s owners move closer to placing the business into administration.
Since taking control of the chain last year, investment firm Gordon Brothers has closed more than 100 stores and two warehouses across South Yorkshire and the Midlands.
As many as 12,000 jobs are now believed to be under threat after the budget retailer approached the High Court on Thursday with a notice of intention to appoint administrators.
The company has a 10-day window to secure a buyer. However, Gordon Brothers has come under fire for turning down a proposed rescue deal from Martin Property Group.
Poundland said the chain could instead be divided up and sold in sections after receiving formal offers from “several established retail operators” covering a “significant part of the business”.
Despite the uncertainty, trading has reportedly strengthened in recent weeks, with executives describing the performance as a “return to profitability”, according to The Times.
A message sent to suppliers, seen by the newspaper, said sales had risen by 8.4 per cent during the three weeks leading up to October 18.
Sales, profit margins and gross profits were reportedly “comfortably ahead of expectations”, while one source described the retailer’s performance as “flying”.
Poundland sales are reportedly surging despite its owners filing a notice of intention to appoint administrators earlier this week
The reported improvement comes as Gordon Brothers faces growing criticism over its decision not to proceed with Martin Property Group’s proposed rescue plan. Unions have accused the investment firm of being “determined” to allow Poundland to descend into chaos.
Negotiations broke down after Gordon Brothers insisted that the prospective buyer take on a £30 million loan inherited when the chain was acquired for a nominal £1 in June 2025.
Business Secretary Jonathan Reynolds has called on Gordon Brothers to explain its decision. Speaking to the BBC, he said: “If there is a potential owner that can continue that progress, obviously that naturally sounds like the best way forward. So if that hasn’t been accepted, I want to know why that is the case.”
Poundland founder Steve Smith, who launched the company in 1990, accused its current owners of acting “greedily” in a statement published over the weekend.
Mr Smith warned that a collapse could ultimately put as many as 30,000 jobs at risk across the wider supply chain and related businesses.
“If Gordon Brothers are being greedy then it is going to cost thousands of jobs. In the newspapers it says 12,000 jobs are at risk. My estimate is more like 30,000 jobs,” he wrote in a lengthy LinkedIn post.
“It is not just the people that work for Poundland. It is also their suppliers. They have thousands of suppliers, some that just serve them, therefore these suppliers will suffer or be at risk of going into administration.”
IN CASE YOU MISSED IT: Jonathan Tijerina Accused of Defacing NYC 9/11 Memorial in Protest
Mr Smith also argued that taxpayers could be left to support thousands of newly unemployed workers if Poundland fails, while liquidators would “make a lot of money”.
He said he had attempted to contact the current owners “several times”, but claimed they had “never returned my call”.
A Poundland collapse would rank among the biggest British high street failures since Debenhams shut its remaining stores in 2021, resulting in roughly 12,000 job losses.
The Prime Minister—whose Makerfield constituency is home to a Poundland distribution centre where 270 jobs could be affected—said last month that he wanted to see employment protected when questioned about the retailer’s future.
“We want to see jobs protected. If there was a potential owner to avoid this that hasn’t been accepted, then the Business Secretary [Jonathan Reynolds] and I want to know why that is the case,” said Andy Burnham.
Reform politician Robert Jenrick claimed on social media that Poundland’s potential collapse would represent “crony capitalism”.
He wrote: “People have attacked me for taking up this fight, saying: ‘Businesses go under all the time, that’s just the free market.’
“Sure, but this is crony capitalism and the 12,000 workers deserve better.”
Poundland has faced mounting difficulties after moving away from the single £1 price point that once defined the brand and expanding into categories such as clothing and frozen food, according to retail analyst Jonathan De Mello.
The wider retail sector is also dealing with rising costs following government increases to wages and employer National Insurance contributions. At the same time, online giants including Amazon and Temu have intensified competition for shoppers.
Potential buyers are reportedly understood to include rival discount chain Poundstretcher, owned by US investment firm Fortress, as well as Iceland and Lidl.
CDS Superstores, the owner of The Range, Homebase and Wilko, is also believed to be considering a bid. The group is controlled by Chris Dawson, who has been dubbed Britain’s “Del Boy Billionaire”.
Modella Capital, which acquired WH Smith’s high street stores and relaunched them under the TG Jones name, has also been linked with discussions.
Bally Auluk, national officer at the Union of Shop, Distributive and Allied Workers, described the situation as “incredibly distressing” for Poundland employees and accused Gordon Brothers of putting their livelihoods at risk.
He called on the owners to “reconsider and to prioritise a unified buyer”.
Our News Outlet has approached Gordon Brothers and Pepco for comment.
