Poundland reports EBITDA swing but faces supplier funding freeze amid ownership dispute
Poundland's managing director said the retailer posted an £86 million EBITDA improvement, yet its owner Gordon Brothers has blocked access to cash for new stock, raising concerns ahead of the Christmas period.
Poundland's managing director Barry Williams told staff that the discount chain had turned an EBITDA loss of £68.1 million in the year to September 2025 into a profit of £18.1 million for the year to September 2026, an improvement of about £86 million. He said like-for-like sales were up 7 % in the first month of the new financial year and rose to 11.4 % during the Halloween period, exceeding the budget by £1.5 million. Williams added that total sales were lower than the previous year because 115 stores had been closed as part of a restructuring, but the performance of the remaining stores was improving.
"Those numbers were spook-tacular," Williams wrote to staff.
Despite the upbeat internal communication, Gordon Brothers, which bought Poundland for £1 in June 2025, has restricted the retailer's access to its credit facilities and cash generated by trading since 27 October. Payments for essential services continue, but payments to suppliers of resale goods have been halted, leaving the company unable to replenish stock ahead of the crucial holiday season. ITV News reported that as of 3 November Poundland had about £25 million in cash that its management could not access.
Gordon Brothers' UK operations head Mark Newton-Jones told the government that the retailer remains financially vulnerable, citing inflation, staffing costs and shoplifting pressures, and said the business is not yet cash-generative at a sustainable level. The firm is reportedly considering offers to break up Poundland, selling stores to other retailers such as Tesco, Poundstretcher, Iceland, B&M, The Range and Lidl, while also exploring the sale of its Irish arm Dealz.
Rescue bids from Martin Property Group and Xyra Group Holdings have been submitted, seeking to acquire Poundland as a going concern. Martin Property Group has urged Gordon Brothers to restore funding to enable a sale. Poundland's chief financial officer Shaun Wills and Williams met business minister Kate Dearden to discuss the situation, which Williams described as a “very good discussion.”
The parliamentary Business and Trade Committee has summoned Gordon Brothers for a private hearing to examine its handling of the retailer's difficulties, and Poundland's notice to appoint administrators is set to expire later this week.