Discount chain Poundland has been sold for just £1, and could reportedly see up to 100 stores shut down.
US investment firm Gordon Brothers has purchased Poundland for the nominal fee from Polish company Pepco.
It comes after Poundland endured a stuff start to 2025 with sales down across its 825 UK stores in January and February.
A restructuring proposal is now expected to be put to the High Court in England for approval, which could, the BBC understands, lead to as many as 100 stores closing.
Pepco had previously warned the increase in employer National Insurance contributions would put extra pressure on the chain, which employs approximately 16,000.
Retail analyst Sofie Willmott from GlobalData, the BBC reports, said Poundland had been losing its appeal to UK consumers as they looked for better quality and value elsewhere.
"Those who favoured Poundland for low price groceries have been tempted away by the supermarkets who have been aggressively competing on price, and the failure of its clothing range has been a distraction for the retailer."
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