Poundland owner Pepco Group has appointed advisory firm Teneo to manage the sale of the UK discount chain.

It was revealed last week that Pepco Group was looking into ways to separate itself from Poundland, which has suffered a decline in sales over the last 12 months.

Chief executive Stephan Borchert told Reuters that he was confident the discounter’s future would be decided by this September, and that there are “definitely interested parties for this business”.

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A Pepco spokesman told The Telegraph: “As stated at our capital markets day on March 6, we are actively exploring separation options, including a potential sale, for the Poundland business. We have started to work with advisers to support us with this process.”

The potential sale comes as the Polish owner said it was moving away from fast-moving consumer goods to focus on its higher-margin clothing and general merchandise Pepco brand.

The strategy sees former Poundland managing director Barry Williams, who became Pepco MD in September 2023, return to leading the British discount chain.