A chain of stores with "goods by the pound" was sold for 1 pound sterling

The budget store chain Poundland, which has long sold products for £1, has been sold for £1, the BBC reports.

The new owner was the American investment company Gordon Brothers.

The previous owner, Polish group Pepco, said it was forced to sell the loss-making business after sales fell in January and February this year.

At the same time, the company noted that Poundland remains a recognizable brand with millions of customers annually.

The chain has 825 stores and about 16,000 employees. Up to 100 stores could be closed as part of the restructuring. The corresponding plan must be submitted to the High Court of England.

The network's problems have been exacerbated by increases in employers' national insurance contributions since April, as well as strong competition.

Analysts say British consumers have become more demanding in terms of quality and convenience of shopping. The popularity of brands such as Temu and Shein has changed customer expectations. Now they are not only interested in low prices, but also in speed of delivery and assortment.

Thus, the classic "goods by the pound" format no longer attracts buyers as much as it used to.

Despite the change of ownership, the chain will continue to operate under the Poundland brand in the UK and Dealz in Ireland and the Isle of Man.

Management of the network will remain with current director Barry Williams.

Gordon Brothers plans to invest £80 million in the renovation of the network, including a credit line and additional funds to cover current expenses.

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