British store Poundland ‘sold for £1’

London – A well-known British store chain, Poundland, has been sold for £1, report said.

The BBC quoted the Poundland’s owner Polish firm Pepco as saying that it had sold the brand for a "nominal" sum to US investment firm Gordon Brothers.

Poundland has 825 UK stores and around 16,000 staff and was struggling to compete with other discount stores.

The new owner is considering to close up to 100 stores, reports said.

As part of the deal, a restructuring plan requiring High Court approval will take place.

Details of that restructuring will be communicated in "due course", Pepco said.

It will retain a minority stake in Poundland.

The Pepco Group, however, are to be repaid tens of millions of pounds as part of the sale, Sky News reported.

Retail Gazette reported that Investment firm Gordon Brothers has  pledged up to £80m for the retailer’s proposed management-led turnaround plan.

Barry Williams will continue to lead the business as it undergoes restructuring amid challenging trading conditions.

 “Poundland is a UK and Ireland retailer of real significance, serving 20 million customers each year with a much-loved brand. Although recent trading has been challenging, we have built a turnaround plan with a simplified and more focused Poundland at its heart, as we aim to deliver the amazing value our customers expect. In due course we’ll share more details of the proposed restructure and turnaround plan,” Mr Williams said in a statement.