The Pepco Group, which owns Pepco and Dealz stores in Europe, is making a profit so is looking at ways to separate itself from Poundland “including a potential sale,” it said.

As part of the plans, former Poundland managing director Barry Williams, who took over as managing director of Pepco in September 2023, will return to his Poundland role.

Stephan Borchert, chief executive of Pepco Group, told Reuters there are “definitely interested parties for this business” and said he was confident Poundland’s future would be decided by September this year.

“Definitely we’re looking at all options but a sale is possibly a very good option since we believe that the business will do better with a new owner,” he said.

Pepco Group said its “ultimate ambition” is to operate under the single Pepco brand, focusing on its more profitable higher clothing and general merchandise ranges. It is also considering separating out the well-performing Dealz Poland.