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Poundland is seeking to close up to 150 stores and two distribution centres as part of a restructuring plan after being sold last week, putting hundreds of jobs at risk.
The company on Tuesday said it expected to have about 650-700 outlets, down from the current level of about 800, after the restructuring, with 68 closures already decided and lease negotiations under way across a number of other locations.
Poundland, which started life in 1990 and became popular with shoppers for selling all its items at a single price of £1, was bought last week for €1 (£0.85) by Gordon Brothers, an investor that specialises in acquiring distressed assets.
Sharing details of a revival plan, the retailer’s managing director Barry Williams said it was “no secret that we have much work to do to get Poundland back on track”.
He added that its “performance for a significant period has fallen short of our high standards” and “action is needed” for the business to grow again.
Poundland’s distribution centre in Darton, South Yorkshire, is expected to close this year, and another depot in Bilston, West Midlands, will shut in early 2026.
“It’s sincerely regrettable that this plan includes the closure of stores and distribution centres, but it’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores,” said Williams.
The restructuring plan has to be backed by creditors, such as landlords, as it goes through a High Court process.
The chain will no longer sell frozen food in stores and will focus on selling its £3 meal deal and other essentials such as milk instead.
Poundland has endured a challenging spell of trading after its previous owner Pepco’s decision to replace its clothing and homeware ranges with the same products it sells in its business in continental Europe. The chain’s sales fell 6.5 per cent over the six months to March 31.
