The new owner of Poundland, the discount retailer, has announced plans to close 68 stores and two distribution centers as part of a restructuring that will also involve stopping the sale of frozen food and online sales. Gordon Brothers, the investment firm that recently acquired the struggling brand, stated that the goal of their recovery plan is to establish a financially sustainable operating model for the business following a period of under-performance. This move puts 1,350 jobs at risk out of the 16,000 currently employed by Poundland.
The company is also looking to reduce store rents more broadly as part of the restructuring. Sky News reported that if creditors approve the plan, 250 Poundland sites could have their rent reduced to zero. Poundland’s future strategy will be centered on profitable stores, with online operations limited to browsing only. In line with this shift, the company will no longer require its frozen and digital distribution center in Darton, South Yorkshire, which is set to close later this year. Additionally, the national distribution center in Bilston, West Midlands, is scheduled for closure in early 2026.
Poundland anticipates ending up with 650 to 700 stores following the overhaul, pending court approval. The retailer currently operates approximately 800 stores in the UK and Ireland, with Irish outlets trading under the name Dealz remaining unaffected by the changes. Poundland has faced challenges in recent years due to increased competition, unpopular stock offerings, and rising costs.
Barry Williams, Poundland’s managing director, acknowledged the need for substantial efforts to revitalize the brand. Despite serving over 20 million shoppers annually, Poundland’s performance has fallen short of expectations, prompting action to stimulate growth. While the closure of stores and distribution centers is regrettable, it is deemed necessary to safeguard the jobs and future of hundreds of stores. Poundland has committed to supporting affected colleagues should the restructuring plans be approved.
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