Poundland to close 68 stores as part of restructuring under new owner

Days after its takeover by Gordon Brothers, Poundland has confirmed the closure of 68 stores as part of a court-sanctioned restructuring. The company is expected to maintain between 650 and 700 stores across the UK, down from its approximately 800 existing locations.

Poundland has further stated that its frozen and digital distribution centre in Darton, South Yorkshire, will also shutter later this year, while its national distribution centre at Springvale in Bilston, West Midlands, will close in early 2026. Delivery will be absorbed into its existing centres in Wigan and Harlow.

In the way of product categories, while Poundland looks to roll back its offering of frozen and chilled foods, it noted that it intends to relaunch ranges lost during the transition to “Pepco-sourced products”, including its womenswear clothing and seasonal general merchandise, both anticipated to be explored in “greater depth”.

Clothing and general merchandise to be explored in ‘greater depth’

These details make up the proposed restructuring plan, which is currently subject to court approval and intends to contribute to the British budget retailer’s ongoing wider turnaround strategy. With this, Poundland is hoping to deliver a “financially sustainable operating model” after an “extended period of under-performance”.

In a statement, Barry Williams, managing director of Poundland, said there was “much work to do to get Poundland back on track”, and while it “remains a strong brand”, “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”.

Williams added: “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.”

Court timetable expected to conclude late summer

It must be noted that the court-sanctioned restructuring process applies to creditors in the UK, with those impacted said to have been informed of the plan. Poundland stated that its operations in the Republic of Ireland and Isle of Man, where it trades under Dealz, nor trade suppliers in the UK or ROI are covered. A court timetable is expected to conclude in late summer.

US investment firm Gordon Brothers, responsible for the turnaround of Laura Ashley and Bench, among other brands, announced its plans to takeover Poundland last week, adding that it would inject 80 million pounds of financing into its proposed restructuring. Its former owner, Pepco Group, opted to offload the chain after a long period of financial underperformance. The Polish retail firm, however, is anticipated to obtain a minority investment interest in Poundland.