What's gone wrong at Poundland - and will Britain's 'Del Boy billionaire' ride to the rescue?

Britain’s ‘Del Boy Billionaire’ has joined the growing number of suitors circling Poundland as the budget retailer nears collapse.

Chris Dawson, 74, who runs CDS Superstores, which owns The Range, Homebase and Wilko, is reportedly considering a deal to buy parts of the business.

He will join the list of interested parties that Poundland’s owners are in talks with, including the retailer’s own employees, to secure a deal ahead of the busy Christmas period.

Gordon Brothers, which bought Poundland for €1 last year, has struggled to revive the retailer in a prolonged downturn in consumer spending despite its cheaply priced goods.

Why is Poundland struggling?

Poundland, which launched in 1990, is battling the damaging impact of higher inflation, which has driven up costs and squeezed margins. 

Crucially, shoppers have realised that fewer products in Poundland shops cost £1. 

Chains like Poundland have less wriggle room to absorb additional costs or pass on as much of those extra costs to shoppers with constrained budgets. 

At the same time, the cost of employing people has increased thanks to Labour's decisions to raise wages and employer National Insurance contributions.

Outside of these external factors, its former owners, the Warsaw-listed Pepco Group, made some wrong moves that have not gone down well with its customers, including putting Pepco clothing in its shops.

Bargain-hunting Poundland customers have also faced higher taxes and rising inflation, which has piled pressure on household budgets. Savvier shoppers are looking to cheaper online alternatives, including Amazon, Temu and TikTok Shop. 

Its most recent woes stem back to last year, when it narrowly avoided collapsing into administration. The chain was sold in June 2025 to US firm Gordon Brothers for a nominal €1 amid 'challenging trading conditions'. 

By November 2025, around 100 Poundland shops had been shut or earmarked for closure. Two months later, as part of its radical turnaround plan, Poundland had shut 149 stores with 2,200 job losses.  

Who wants to buy Poundland now?

Poundland's owner, Gordon Brothers, has put the retailer up for sale, barely more than a year after buying the company from PepCo.  

The chain's owner is now in talks with a number of different potential buyers as it seeks a rescue deal, which includes proposals to carve up the business and offers for the entirety of the business. 

Billionaire Dawson, owner of The Range, is, according to The Times, understood to be looking to acquire a selection of the discount retailer’s shops.  

Dawson got his nickname, the 'Del Boy billionaire', via the press as a reference to his yellow Lamborghini Urus, which has a personalised number plate 'DE11 BOY', a homage to the character Del Boy Trotter from the classic TV show Only Fools and Horses.

Dawson started his career as a market trader, before founding The Range and scaling it to a major high street chain. He has since acquired Wilko and Homebase out of administration.

Another firm understood to be circling Poundland, or at least some of its shops, is Modella Capital. 

The private equity group owns Britain's WH Smith shops, now known as TG Jones stores and previously bought ailing accessories chain Claire's, Hobbycraft and The Original Factory Shop. 

All Claire's standalone shops in the UK and Ireland stopped trading earlier this year after its financial woes saw it fall into administration twice in a year.

It has also been reported that Poundland has stressed its preference to sell the business to Irish firm Martin Property Group, which holds real-estate interests spanning shopping centres to hotels. 

Martin Property Group recently acquired National Car Parks out of administration. 

Poundstretcher owner Fortress Investment Group is also understood to be interested in buying Poundland. 

A spokesperson for Poundland told This is Money: 'From a Poundland perspective, our leadership team – including Barry Williams (managing director) - and Andy Bond (Pepco’s former CEO) - have been working with the Martin Property Group on a fully-funded, ready-to-go, solvent offer for the business, keeping it intact and continuing the rapid progress that's already been made.

'While the Martin Property Group is the management team’s preferred partner, their sole intention is to work with whoever can deliver the best result for the business, colleagues, and suppliers to build on the successful recovery that’s already taking shape.'

This is Money contacted Gordon Brothers for comment. 

What could a deal mean for Poundland's staff and shoppers? 

Union officials at Usdaw, a union representing shopworkers, are understood to have been offered a meeting with Poundland management as they are concerned that owner Gordon Brothers may favour selling Poundland piecemeal. 

Bally Auluk, Usdaw’s national officer, has claimed that Poundland is on the verge of falling into administration, putting 12,000 jobs at risk. 

Shop closures and job cuts often ensue after a business is acquired, but nothing has been confirmed.   

Jonathan De Mello, founder and chief executive of JDM Retail, told This is Money: 'Poundland’s recent turbulence is a textbook case of strategic over-complication compounded by historic corporate baggage. 

'The brand completely lost its way when it strayed from the single price point that defined its core identity, confusing shoppers and adding immense operational complexity by expanding into frozen food, clothing, and a costly e-commerce infrastructure.'

He added: 'As for a potential takeover, the owner of The Range would be an excellent fit. Chris Dawson understands the UK variety discount sector intimately, possesses the supply chain muscle required to make low margins work, and has already demonstrated a clear appetite for estate integration with his acquisition of Wilko. 

'A trade buyer of this calibre would bring genuine operational synergy, which is exactly what Poundland needs rather than another round of private equity financial engineering. 

'While the ongoing management buyout talks and interest from multiple suitors offer some reassurance for the thousands of employees, staff must brace for further estate rationalisation, as any incoming owner will inevitably need to trim the remaining fat from the store portfolio to secure long-term profitability.'