Pepco appoints advisors to handle potential sale of Poundland

Pepco Group has reportedly appointed advisors at Teneo to handle the sale of Poundland, a UK budget retail chain. If offloaded, the move could put at risk the retailer’s 825 stores.

The news comes on the back of a Capital Markets Day investor presentation last week in which Pepco’s chief executive officer, Stephan Borchert, said the company was “actively exploring separation options for Poundland, including a potential sale”.

As Pepco pursues a more simplified structure intended to enhance shareholder value, the group also stated that Poundland’s placement in the “increasingly demanding UK retail environment” had been further aggravated by the local government’s tax changes, which will bring additional pressure on the retailer from April 2025.

The latest appointment of advisors was confirmed in a statement to The Telegraph by a spokesperson for Pepco, who reaffirmed plans to explore a separation. “We have started to work with advisors to support us with this process,” the statement added.

Poundland has been somewhat of a financial burden for Pepco, with challenging trading conditions causing declines in sales over the past year. For the first quarter of its current financial period, the retailer saw LFL sales drop 7.3 percent, with clothing and general merchandise particularly underperforming.

At the beginning of 2025, the group already initiated a review of the business, with Alix Partners appointed to lead the assessment. No information has yet been disclosed about potential suitors to Poundland or what the retail chain is worth.

FashionUnited has contacted Pepco Group with a request to comment.