Poundland to close 68 stores in restructuring plan
Poundland has announced the closure of just under 10 per cent of its estate as its restructuring plan takes shape under new ownership.
The discount retailer, previously owned by Pepco, was acquired by investment giant Gordon Brothers for just £1 after a prolonged period of declining sales.
The chain has struggled with “challenging trading conditions”, which have been further impacted by the clearance of old stock and product availability issues.
Along with store closures, Poundland will move towards a more “streamlined” food offering.
It will withdraw from frozen food – closing its frozen and digital distribution centre at Darton, South Yorkshire – and focus on £3 meal deals and other essentials such as milk, the company said.
“It’s no secret that we have much work to do to get Poundland back on track,” Barry Williams, managing director of the firm, said.
Poundland struggles with performance
Williams was parachuted back onto the Poundland board at the start of this year as Pepco sought ways to boost the retailer.
He had stepped back from the company in September 2023, leaving to head Pepco’s European sister chain.
“Our performance for a significant period has fallen short of our high standards and action is needed to enable the business to return to growth,” he said.
“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.
“It goes without saying that if our plans are approved, we will do all we can to support colleagues who will be directly affected by the changes,” Williams added.
Poundland also announced the simplification of its digital presence, converting Poundland.co.uk into a brand website, and the retirement of its Perks app as the business “focuses on its in-store offer for customers”.
The company said that impacted creditors have been contacted to inform them of the plan, and the court timetable is expected to conclude in late summer.