Modella Capital, the owner of TG Jones, Hobbycraft, and Flying Tiger Copenhagen, is among the bidders for Poundland according to Sky News.

The publication said it had directly seen information indicating that Modella had made it through to a second-round bid to purchase the struggling discount retailer.

Poundland currently employs around 12,000 staff across approximately 600 UK stores. Following a pre-tax loss of £79m for the year to September 2024, its owners Pepco Group pursued a sale of the organisation, which resulted in Gordon Brothers acquiring Poundland for £1 in June 2025.

Post-sale, the new owner pursued a £60 million restructuring plan, for which it won court approval in August 2025. This resulted in Poundland closing 149 stores and axing 2,200 staff in January 2026.

Last week, Sky News reported that Gordon Brothers was preparing its own sale of Poundland, just over a year after its own acquisition.

Modella has acquired three British High Street chains in the past nine months, all of them in financial distress. The Original Factory Shop and Claire’s Accessories both fell into administration in January, leading to approximately 2,200 jobs losses.

It is best known for purchasing WHSmith in June 2025, which it renamed TG Jones. In July, the private equity firm won court approval for a restructuring plan that could close up to 150 High Street stores, having warned that the retailer was close to insolvency.

In February, Sky News reported that Modella had received a takeover offer for Hobbycraft and was considering the sale.

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