The drive chain with over 800 stores should be sold – causing fears for high streets.
A significant number of stores could be set as part of the proposed sales, reports say.
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Poundland sets up for Salecredit: Getty
It is said that Poundland hired an advisory company Teneo to oversee the sale.
Spokesman Pepco Group, which is the POUNDLAND BATTLE COMPANY, told the Telegraph: “As stated on our capital day of March 6th, we are actively investigating separation options, including potential sales, for Poundland.
“We started working with advisers to support us with this procedure.”
Comes after Pepco said he watched “all strategic capabilities” to separate Poundland from his brand.
The Polish group said she could focus her focus on more profitable companies in Europe.
Pepco has previously warned that the upcoming trips to National Employers’ insurance (NIC) and a national minimum wage will significantly increase their costs.
Chancellor Rachel Reeves said during her autumn statement last year that she would increase their contributions for National Employers Insurance (NIC) from 13.8% to 15%.
She also announced a reduction in the threshold where companies begin to pay contributions from £ 9,100 to £ 5000.
It is estimated that the move will raise £ 25 billion, which will cost around £ 800 per employee for companies.
At the end of last year, it was revealed that the profit in Poundland also fell with £ 641m in the year to September, and the bosses again blamed the disputes in the midst of bad chances thanks to the measures made by Reeves.
Walkthrough Poundland first one million pound shops
A spokesman also said that a huge loss was “because of the damage to the starfish in Poundland relating to the acquisition of the UK chain in 2016”.
This means that the business value has decreased due to the expected future cash flow.
More recently, Poundland has also recorded revenue drop by 9.3% for three months to December.
The company is not the first job that warned of the challenges because of Reeves’ autumn statement.
This move has blown up numerous High Street stores, including Gregg’s, Sainsbury’s, Next and Halfords, which everyone said he could make them increase prices and further bruises.
In January, Greggs increased the price of its popular sausage by 5p in response to higher salary costs from the autumn statement.
Sharp air conditioning
Today’s development points to a sharp retail climate that has been teasing high streets up and down in the UK in recent years.
Growing expenses, together with customers, splashing wires of the handbags, put pressure on companies and damaged sales.
Principals such as Poundland, B&M and Home Calgains have achieved better than the others thanks to a low price, but it has created rivalry.
At the beginning of the year, Poundland said it would increase the number of items costing £ 1 or less than about 1,500 to almost 2,400 to appeal to customers without money.
The company also struggled with the increase in theft, and hundreds of employees are now wearing bodywork to help capture criminals.
Retail pain in 2025.
The British retail consortium predicted that the Treasury Tripler would cost NICS’s retail sector 2.3 billion pounds.
A study by the British Chamber of Economic Chamber shows that more than half of companies plan to increase prices by early April.
A study at more than 4,800 companies showed that 55% expect prices to increase in the next three months, which is more than 39% in a similar survey conducted in the second half of 2024.
Three quarters of companies have cited the cost of employment of people as their primary financial pressure.
The Retail Research Center (CRR) also warned that around 17,350 retail places are expected this year.
It is located on the back of a heavy 2024. When 13,000 stores closed its doors forever, it is already an increase of 28% compared to the previous year.
Professor Joshua Bamfield, CRR Director, said: “The results for 2024 show that although the results for the closing of stores were not as bad as in 2020 or 2022, they still do not mind, with worse in 2025.”
Professor Bamfield also warned of a dark view of 2025, predicting that as many as 202,000 jobs could be lost in the sector.
“Increasing the cost of running and the cost of the household of each consumer, it is very likely that we will see retail losses of eclipse of pandemic height 2020.”
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Source: HIS Education