Poundland has been sold for just £1 to the former owner of Laura Ashley - sparking fears of store closures and job losses, writes Emily Hawkins.

US investor Gordon Brothers will take over the discounter's 800 shops and 16,000 employees from Polish owner Pepco.

Poundland was put up for sale after trading in the UK and Ireland plummeted.

Sales fell 6.5pc over the six months to March 31.

It is understood to be aiming to close around 100 stores and to negotiate rent reductions.

Concerns over jobs follow retail redundancies at Sainsbury's, Morrisons, Quiz and Tesco.

Union Usdaw is seeking “urgent talks” with the new owners about what their plans mean for staff.

National officer Bally Auluk said: “Pepco has been seeking a buyer for some time, so it is a positive that the company has a future under a new owner.

“We are aware that part of the deal is to restructure, and we look forward to being consulted.”

Pepco, which has owned Poundland since 2016, plans to retain a minority stake.

Details of a shake-up plan are set to be outlined in the next few days.

Susannah Streeter, Hargreaves Lansdown's head of money and markets, said: “Poundland still has pulling power among customers shopping on tight budgets, so is set to remain a presence. It seems inevitable that its UK store estate will shrink markedly.”