Up to 200 Poundland branches may be forced to close under the terms of a potential rescue deal, placing hundreds of jobs and high street presences at risk.

The discount retail chain, which has been on the market since March, is attracting final bids this week. According to The Sunday Times, investment firm Gordon Brothers has emerged as the leading contender. Other interested parties include Hilco Capital, Endless, and Modella Capital — the private equity group behind The Original Factory Shop and the recent buyer of WHSmith’s high street business.

With 825 stores nationwide, Poundland has struggled in the face of surging operating costs and growing pressure from major supermarket chains offering budget-friendly alternatives.

The retailer’s parent company, Pepco Group, confirmed earlier this year that it is shifting focus away from fast-moving consumer goods in favour of higher-margin clothing and general merchandise. This strategic pivot includes “actively exploring separation options for Poundland, including a potential sale”.

A spokesperson for the group added: “Poundland is executing a turnaround programme to get the business back on track, focusing on its core heritage strengths and a simpler pricing proposition and customer offer.”

While a deal could inject much-needed direction for the embattled chain, the fate of hundreds of locations across the UK now hangs in the balance.

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