Pepco will get rid of Poundland for 1 pound? British media thunder about the future of popular stores

As reported by the British media, the fate of the Poundland chain, belonging to the PEPCO group listed on the WSE. For many years, most of the products offered by Poundland cost 1 pounds, now the entire network can be sold for so much media reports, due to huge problems with profitability.

The Poundland network belonging to the PEPCO group struggling on the WSE is struggling with problems on the increasingly demanding retail market in Great Britain. The local government has introduced tax changes since April this year, which further increased the pressure on the cost base.

In the last financial year, the network maintained revenues of EUR 2 billion, but the EBITDA result dropped by 62.7 percent. rdr. In addition, the PEPCO Group made a copy for the loss of Poundland assets for the amount of EUR 775 million, mainly due to weaker results, deterioration of the prospect of profitability and growing cost and competitive challenges.

Pepco announced a few months ago that in the Poundland case he is considering all options, including the sale of British business. In the press release regarding this year's Investor's Day, it was written that the Pepco Group is moving away from quickly in favor of simpler activities focused on clothing and widespread goods, actively seeking the possibility of separating Poundland from the group, including potential sales.

At the end of April, we informed behind the local media that there were several people willing to buy, about which more in the article “Specialists in restructuring interested in the Pepco offer. The British discount store is waiting for sale”. The topic on the islands is urgently followed by the largest media because the Poudland network employs over 16,000. employees in 825 stores, often on the main streets of British cities.

At the weekend, the media has circulated information that as part of the restructuring process, up to 200 unprofitable stores could be closed, about which “The Telegraph”, which cites industry sources, wrote more about industry sources claims that the network probably “will not survive without closing a large number of stores”, and thus loss of thousands of jobs.

Quoted by “The Sun” Porofesor Joshua Bamfield, director of the British Retail Trade Research Research Center comments that “the increase in both the costs of running shops and the costs of each consumer household makes it highly likely that the number of lost jobs in retail places will exceed the peak of the pandemic in 2020.”

In turn, the sources that “The Times” refer to say that the network can be sold “basically for a pound” due to the need for deep restructuring necessary to stop the decrease in results. The newspaper informs that the American investment company Gordon Brothers is growing up to the favorite to take over stores. According to the Daily Mail, potential investors estimate that about 100 million pounds are needed to stabilize the company's financial situation.

Poundland is one of the main retail sales networks in the British Isles. It offers a wide range of everyday products at attractive prices. In stores you can find, among others Food products, drinks, cleaning products, cosmetics, home products, decorations, stationery, toys, seasonal accessories, as well as clothing (mainly Pepco brands). The network is known for its low price policy – for many years most products cost 1 pounds, although currently prices range from 50 pens to even 10 pounds, depending on the assortment.

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