Poundland, the UK budget retailer, announced a restructuring plan involving the closure of 68 stores, impacting over 1,000 jobs. The plan also includes the closure of distribution centers in Darton, South Yorkshire, and Bilston, West Midlands.
Further closures, potentially affecting another 70 stores, are anticipated due to lease expirations and ongoing negotiations for rent reductions with landlords.
This restructuring follows the recent sale of Poundland to US investment firm Gordon Brothers for a nominal sum. The company currently operates 792 stores across the UK and Ireland, employing approximately 16,000 people.
Poundland managing director, Barry Williams, acknowledged the difficult decision, stating that these closures are necessary to secure the long-term viability of the business and safeguard remaining jobs and stores. He emphasized the brand’s strength, serving over 20 million customers annually, but admitted underperformance necessitated immediate action to restore growth.
The restructuring plan, subject to court approval, will see Poundland discontinue frozen food sales, focusing instead on its £3 meal deal and essential groceries. Online ordering will cease, with the website transitioning to a branding and promotional platform.
The retailer also plans to enhance its womenswear offerings, reinstate popular seasonal merchandise, and restore previously discontinued product categories to better meet customer demand.
The sale by previous owner Pepco, which acquired Poundland in 2016, reflects ongoing sales challenges. Pepco cited increased employer National Insurance contributions as an additional factor impacting the chain’s performance.
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