Poundland teeters on brink of collapse - putting stores and jobs at risk

Updated: 11:03 EDT, 27 October 2026 The future of Poundland is hanging in the balance as its owners mull splitting up the business – with 12,000 jobs on the line.Private equity firm Gordon Brothers, which bought the budget retailer for just €1 last year, is in talks with multiple potential buyers about a deal for all or parts of the retailer.Although it is considering at least two offers for the whole business, it is increasingly likely that its owners will sell off shops piecemeal to other retailers, risking job losses.Retailers thought to be interested in picking up stores include Lidl and Iceland, while there have also been talks with Chris Dawson, who runs the CDS Superstores group, which owns The Range, Homebase and Wilko.Gordon Brothers had wanted to sell the business to Irish firm Martin Property Group, which holds real estate interests from shopping centres to hotels.But the firm is now courting other bidders as Martin Property Group does not want to commit to an upfront repayment on a £30million shareholder loan. This raised fears that Gordon Brothers could liquidate the company within a year. The future of Poundland is in doubt - putting 12,000 jobs at risk Sales talks, which kicked off at the beginning of September, are continuing this week and there could be an outcome within the next few days, a source close to the discussions said.Should Poundland collapse it would mark one of the biggest retail insolvencies in years.The worrying news comes as Chancellor John Healey hopes to use his Budget to win back the faith of retail bosses left reeling by a barrage of higher taxes and other costs under his predecessor Rachel Reeves.A spokesman for the Gordon Brothers said: ‘While Martin Property Group had been identified as the preferred bidder by Poundland’s management team, attention must now turn to other active bids.‘As well as interest from buyers for the whole business, the sale process has also surfaced a number of formal and indicative offers for significant viable parts of the business from established retail operators. 'These options will now be objectively evaluated, with a view to minimising uncertainty for Poundland's people and all relevant stakeholders.’Poundland has struggled with a prolonged downturn in consumer spending despite its cheap goods at the same time as it grapples with higher costs. Fewer products in its shops cost £1 compared to its launch in 1990.Employing staff is costlier, but it has denied claims from shopworkers' union Usdaw that it is on the brink of collapse, leaving 12,000 workers anxiously awaiting an update.The group only narrowly avoided collapsing into administration when it was sold in 2025 to US firm Gordon Brothers for a nominal €1 amid 'challenging trading conditions'. Last year, it shut 149 stores with 2,200 job losses. It now operates around 600 shops. The shopworkers’ union, Usdaw, accused Gordon Brothers of being ‘determined to let the company fall into administration’.Usdaw national officer Bally Auluk said: ‘Despite our repeated attempts to speak to the company, they continue to ignore us.‘This is an incredibly worrying time for our members, and the union will continue to fight for their jobs and provide them with the help and support they need during this uncertain time.’It comes amid reports that a trio of newly appointed board directors have quit as they wanted to see the entire company bought.Andrew Kirkpatrick, Stephen Welch and Dominic Young, who were appointed just 12 days ago, are set to leave unpaid, according to a report by The Telegraph. DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you