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Struggling budget chain Poundland has been sold for £1 and now faces a shake-up which could see up to 100 stores close, the BBC understands.

Its owner Polish firm Pepco confirmed it had sold the brand for a "nominal" sum to US investment firm Gordon Brothers.

Poundland has 825 UK stores and around 16,000 staff and was struggling to compete with other discount stores, with sales down this January and February.

Following the sale a proposed restructure will be put to the High Court in England, Pepco said.

It comes after Pepco warned that increased employer National Insurance contributions which kicked in in April would put added pressure on the chain.

Pepco Group has owned Poundland since 2016, but the firm had to auction the brand off after sales slumped over the past year.

Gordon Brothers is a global investment firm which formerly owned fashion label Laura Ashley.

https://www.bbc.co.uk/news/articles/c36594lr29ko