Poundland has been sold for £1 and now faces a shake-up which could see up to 100 stores close.

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

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

The business will continue to be led by Barry Williams, currently managing director of Poundland, it said.

According to the BBC, the business will continue to operate under the Poundland brand in the United Kingdom and under the Dealz brand in the Isle of Man and the Republic of Ireland, it added.

"We want to sincerely thank all the Poundland team for their ongoing commitment and contribution to the group and wish Barry Williams and his team all the best for the future," said Pepco chief executive Stephan Borchert.

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.

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Following the sale, a proposed restructuring 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 Apri,l would put added pressure on the chain.

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