US-based Gordon Brothers is exploring a sale of discount retailer Poundland almost a year after taking it over, Sky News reported.

The investor, which acquired Poundland in June 2025, is in talks with advisers about launching an auction process for the chain, which employs approximately 12,000 people across around 600 stores in Britain.

Industry sources cited in the report said Gordon Brothers had not yet made a final decision but was likely to proceed, with advisers expected to be appointed within days.

Gordon Brothers took over Poundland from Poland's Pepco Group for £1 ($1.36), a deal that led to the closure of as many as 200 stores through a court-sanctioned restructuring plan.

That deal handed Poundland's 800 stores to Gordon Brothers.

The retailer, which employed more than 14,000 people before the restructuring, now trades from roughly 600 shops.

Retail executives suggested prospective bidders were likely to include other turnaround funds, private equity companies or industry players.

Poundland's performance is understood to have stabilised in recent months, and the company is expected to issue a trading update in the coming days.

Responding to a Sky News enquiry, a Poundland spokesman said: "We have made very significant progress over the past year with a recovery plan that's created simpler, better value for customers centred around thousands of items back at our iconic £1 price point."

He declined to comment on talks with advisers or the possibility of a new sale process.

Poundland was founded in 1990 in Burton upon Trent, Staffordshire, by Dave Dodd and Steven Smith. The business became famous for its "everything for £1 ($1.36)" model.