Poundland’s rescue plan sanctioned amid widespread landlord opposition

The High Court of England and Wales has sanctioned Poundland Limited’s Part 26A restructuring plan, clearing the way for one of the UK’s largest retail restructurings of 2025. The plan, approved by Sir Alastair Norris on October 24, 2025, allows the discount retailer to avert imminent insolvency through a complex financial and leasehold restructuring backed by new owner Gordon Brothers’ vehicle Peach Bidco and former parent Pepco Group NV. The rescue package features £327 million contributed by Pepco by way of write-off and new or confirmed lending, alongside a £95 million working capital facility provided by Peach.

The plan restructures over 470 store leases, introduces tiered rent reductions up to 75%, and grants landlords rolling break rights while offering a 170% uplift on estimated returns in an insolvency scenario plus a profit-sharing mechanism tied to future EBITDA performance. Despite 10 of 14 creditor classes voting against, the Court used its cross-class cram-down powers under section 901G of the Companies Act 2006, finding dissenting landlords “no worse off” than in the relevant alternative—an asset-realisation administration. Sir Alastair praised Pepco’s “sacrificial approach” and Gordon Brothers’ injection of turnaround expertise, describing the plan as “a genuine attempt to formulate a fair and reasonable solution to a critical problem.”

Read the decision here.

The restructuring was led by Tom Smith KC, Georgina Peters, and Madeleine Jones of South Square (instructed by DLA Piper) acting for Poundland. Ryan Perkins of South Square (instructed by Slaughter and May) appeared on behalf of supporting creditor PEU (Tre) Limited, the Pepco Group subsidiary and Poundland’s immediate parent. Teneo Financial Advisory Limited advised on the financial and leasehold restructuring strategy, while FTI Consulting LLP provided expert evidence on valuation, comparative outcomes, and benefit allocation through reports authored by Lindsay Hallam and Alexis Anaman.