LONDON, Dec 10 Reuters European discount retailer Pepco Group will examine every strategic option for its struggling Poundland business in the UK, the group39;s new CEO said on Tuesday.

It is important to look at every strategic option for this company to bring it back on track, Stephan Borchert told Reuters after the group booked a 775 million euros 816 million noncash impairment charge for variety store chain Poundland because of its weak performance and outlook.

Poundland trades from 836 stores and contributes about 30 of Pepco Group39;s total revenue.

Asked if Poundland would stay in the group, Borchert said he would say more on the group39;s strategy and on Poundland when he hosts a Capital Markets Day on March 6.

Poundland39;s likeforlike sales fell 3.6 in its year to Sept. 30, while underlying earnings slumped 21.5 to 153 million euros.

Borchert said Poundland continued to face headwinds in its new financial year, with sales declines in clothing and general merchandise following the transition to Pepcosourced product ranges at the start of the year.

With the transition to the Pepco ranges I think the business lost a bit of its DNA, so we are working now as a team there to bring this back, he said in an interview.

He highlighted the reintroduction of more products priced at one pound, which reflected a return to Poundland39;s heritage.

The CEO also said the new UK government39;s taxraising budget in October would mean additional costs in the lower double…