High street discount giant Poundland has been sold for less than £1 which could see up to 100 stores close, after its Polish owner confirmed it had sold up.

Pepco confirmed it had sold the brand for the meagre fee after its sales slumped in January and February this year.

There are currently 825 UK stores, including Abergavenny, Chepstow and nearby Brynmawr, with as many of 100 of those at risk of closure.

Employing 16,000 people, the high street giant has struggled with increased National Insurance employer contributions which were enforced in April.

The business will continue to be led by Barry Williams, its current managing director, and will continue to operate under the same name in the United Kingdom.

Gordon Brothers, the group which owned furniture giant Laura Ashley, is investing a total of £80m in the firm which includes an existing secured loan of £30m and another overdraft of the same amount.

Poundland reportedly attracted interest from other parties, including Hilco and Modella, the new owners of WH Smith’s.

The budget retailer has slipped behind competitors recently, with supermarkets such as Tesco, Aldi and Lidl expanding apace alongside rival groups such as Savers, The Range and Home Bargains.

The famous green signage appeared on British high streets for the first time in 1990, becoming popular for offering a range products priced at just £1. It would stick with this model up until 2019, when the company developed a new pricing structure. In recent months, however, it has started to increase the amount of £1 on the shelves.

Now, having been sold for just 85p, the new owner has not yet given any details of Poundland’s restructuring plan, which still needs to be approved by the High Court.