The parent firm of Poundland has said it expects to sell the UK discount chain by the end of September.
Pepco Group, which has owned the brand since 2016, said it is still considering options for the “separation” of the 818-strong retail chain.
It is understood that a number of investment firms and private equity groups are among those to have tabled proposals to buy the business since it was put on the market earlier this year.
Laura Ashley owner Gordon Brothers is reportedly among the favourites to strike a deal.
Last week, the Telegraph reported that up to 200 Poundland stores could face closure as part of a rescue sale.
On Thursday, Pepco said it is looking to offload the brand amid a wider shift away from food and drinks, with a deal expected before the end of its financial year in September.
It came as the group reported weak Poundland sales over the past half-year, cutting the brand’s trading guidance for the year as a result.
Stephan Borchert, chief executive of Pepco, said: “At Poundland, trading remains challenging, which is reflected in a profit outturn below expectations for H1 and a weaker outlook for the full year.
“Barry Williams, who was reappointed as Poundland managing director in March 2025, and his team are actively driving a recovery plan to help turn around the business by refocusing on its traditional core strengths.”
Poundland revenues dropped by 6.5% to 985 million euros (£830 million) for the six months to March, compared with a year earlier.
The brand suffered “challenges across all categories” and had 18 net store closures over the period.
Poundland is now due to deliver earnings of between 0 and 20 million euros (£16.9 million) compared with previous guidance of 50 million euros and 70 million euros.
The wider Poland-based Pepco Group saw total revenues grow by 4.3% to 3.34 billion euros (£2.82 billion) for the half-year.
However, like-for-like sales were marginally lower as growth in its Pepco brand was offset by the struggling Poundland operation.
