Poundland is currently facing significant challenges, prompting several potential buyers to submit acquisition offers. The retailer has struggled with declining sales and increasing losses, leading its parent company, Pepco Group, to explore a sale. Notable bidders include Hilco Capital and Endless, who presented their proposals on April 25, alongside Alteri Investors and Modella Capital, the latter having recently acquired WH Smith’s high street division.

Pepco's decision to consider selling Poundland comes amid ongoing pressures on the business. The company announced last month that it would shift its focus to the Pepco brand, aiming to streamline operations and enhance efficiency. This strategic pivot follows disappointing second-quarter sales for Poundland, which continued to experience negative like-for-like performance, mirroring trends from the previous financial year.

During its recent Capital Markets Day, Pepco acknowledged that attempts to integrate its brands—Poundland, Pepco, and Dealz—into a unified model have not yielded the expected benefits for customers or shareholders. This integration has resulted in lower revenue growth and profitability, with Poundland's performance particularly dragging down overall results.

Despite reporting an annual turnover of €2 billion (£1.7 billion) for FY24, Pepco cautioned that Poundland is navigating an increasingly difficult retail environment in the UK. The company also highlighted that recent tax changes announced in the budget would further strain Poundland's cost structure.