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UK discount retailer Poundland has been sold for less than £1 to US private equity group Gordon Brothers, as its Warsaw-listed owner moves away from selling low-margin consumer goods.

Pepco Group said it had sold the struggling retailer for a nominal consideration — or €1 (85p), according to a person familiar with the deal — and at least £30mn in debt, plus a potential further £30mn loan to be extended by Pepco on completion of Poundland’s proposed restructuring plan.

It said Poundland would be led by Barry Williams, its current managing director.

Gordon Brothers said it would provide up to £80mn “to support the management team’s proposed restructuring and turnaround plan”.

Pepco said its sale of the 825-store chain would allow it to focus on its higher-margin clothing and general merchandise business in Europe.

It gave no details of Poundland’s restructuring plan, which is subject to approval by England’s High Court.