Poundland- Suspicious Activity?

The Poundland chain has suddenly gone into administration.

This was a British chain until after some other overseas take-overs it was bought for just £1 by American "investors", the Gordon Brothers, a year ago.

The same two also bought an Australian chain, Barbeques Galore, also in 2025, and that collapsed a month later.

There were chains of ownerships prior to the Gordons grabbing them. It seems these firms fall into the hands of mere money-traders who could not care less about the businesses, customers and staff.

So is Poundland genuinely in trouble.... or is the destruction wilful?

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Sazzio · 36-40, M

That is weird. And it was brought for £1? 🤣 Could be genuine due to the struggles. I think I was a Teen when £1 shop opened. The competition was crazy between Pounland and Pound World but £1 back then still meant a lot.

Nowadays unfortunately pay a pound, expect the pound quality. Everybody knows so many people refuse to buy anything from the pound. It can be good for convenience but then to do a special shopping to Pound is another thing.

LegendofPeza · 61-69, M

The company is worth nothing , but the retail space is.

ninalanyon · 70-79, T

@LegendofPeza Is retail space in most of the places that had a Poundland worth anything? In my travels around the UK in the summer I saw lots of depressed high streets. Many had a Poundland or similar as well as several charity shops and several empty shop units.

devonman · 61-69, M

@LegendofPeza Poundland does not t own the retail space; it is all leased,

TheSirfurryanimalWales · 61-69, M

My local Poundland is right next door to Home Bargains.

But it’s not been everything is a pound for years.

And there’s your problem…..it doesn’t do what it says on the shopfront.

Home Bargains is far busier.

DeWayfarer · 61-69, M

They are grabbing the inventory they want and to heck with what they can't sell at that price. Not even USA mom and pop stores sell the whole thing that cheap.

ArishMell · 70-79, M

@DeWayfarer They've not been able to sell anything at under a £! for along time, but I suppose most people using the discount shops do know that.

Nimbus · M

Sad times indeed!

whowasthatmaskedman · 70-79, M

On first inspection it looks like a break up sale..😷

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ArishMell · 70-79, M

@whowasthatmaskedman Only, the owners are not gaining income if the tenants go out of business.

In the UK they still have to pay Council Tax and insurance on their property. (Other countries might have equivalents.)

It is becoming harder to find worthwhile commercial tenants too.

whowasthatmaskedman · 70-79, M

@ArishMell Agreed. But factoring in that gold , silver and similar "stores of wealth"are horrendously overpriced and that there is a prospect of earning some rent or taking a tax loss on the building against another enterprise it still makes sense to own a real estate freehold. As Will Rogers said "Buy Land. They aint making it any more. (and before some smarty pants mentions it. Yes. I know about the volcanos in Hawaii and the sea eruptions off Scandinavia..)😷

ArishMell · 70-79, M

@whowasthatmaskedman It will likely depend on other factors outside of the businesses' control, such as taxes, and those will differ between countries.

In the UK these include a Business Rates system that seems based on nothing logical or fair, and the increasing costs of employing anyone.

Another external factor for town-centres generally is the development of out-of-town estates of supermarkets; huge landscape blots aimed at shoppers with large cars and larger bank-balances. These "hollow out" towns, leading to a lot of empty premises between tacky alternatives like "vape" shops, tattoo parlours and betting-shops.

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