Poundland has posted a pre-tax loss of £85.2m in the year to September, almost doubling the previous year’s £45.4m deficit, according to its latest filings.
The retailer’s sales fell 12 per cent to £1.5bn in the year to September 2025, as its gross margin narrowed to 31.4 per cent amid deteriorating trading conditions.
Directors blamed the widening loss on “difficult trading conditions” and a “significant programme of restructuring” that reshaped much of the business during the period.
The retailer described 2025 as a “reset moment,” adding that the year “led to a challenging set of numbers seen in these statutory accounts, but it has positioned the company as well as it could be in terms of its turnaround.”
Poundland shed 11 per cent of its workforce during the period, with its average headcount falling to 14,417 employees across stores, distribution, and administration.
The bulk of those job losses came from the retailer’s store and distribution network, while approximately 100 administrative roles were also cut during the restructuring process.
The group’s accounts also revealed it had to reduce its revenue and cost of sales for the prior year by approximately £61.1m due to an accounting error, which had no overall impact on profits.
Poundland cut its store portfolio by 22 per cent, leaving the chain with 642 locations in January 2026, down from 820 sites the year before.
Investment firm Gordon Brothers purchased Poundland for just £1 from Warsaw-listed retailer Pepco Group in July 2025, but is now preparing to offload the business little more than a year after completing that acquisition.
Gordon Brothers has appointed advisers at Alvarez and Marsal to run an auction of the business, with Sky News first reporting that a sale process is now underway.
Barry Williams, managing director of Poundland, said: “Re-building trust with customers takes time, but we’re making very significant progress as we deliver the ranges and price simplicity they demand of us.”
Poundland says it has regained momentum under Gordon Brothers’ ownership, pointing to a revamp of its product range and the return to its £1 price point across half of its grocery products.
The retailer will open its first new store in two years later this week, with a new site in West Thurrock, Essex, marking a notable milestone in its recovery effort.
A spokesperson for Poundland said: “The filing is historic, covering old ground from a period that ended in Sept 2025, that reflects the challenging year that led to the well-documented need for a comprehensive restructuring plan.”
The spokesperson added that “since the period covered by the filing, Poundland’s made very significant progress under fresh leadership, returning, as we announced last week, to profitability.”