Poundland is set to close 68 stores and two UK warehouses as part of its restructuring plan.
The high street discount store was sold to investment firm Gordon Brothers last week for a nominal fee after recording mounting losses.
If approved by the court, the restructuring plan will aim to deliver “a financially sustainable operating model” for the business.
The company’s frozen and digital distribution centre at Darton, South Yorkshire will close later this year and its national distribution centre at Springvale in Bilston, West Midlands will shut its doors in early 2026, according to the plan.
The plan will also see remaining stores no longer selling frozen food and a reduction in its chilled food offerings.
Yesterday, our City editor Mark Kleinman learnt the company will halt rent payments at hundreds of its shops.
According to a letter sent to creditors in the last few days, roughly 250 shops have been classed as Category C sites, with rent payments “reduced to nil”.
“It’s no secret that we have much work to do to get Poundland back on track,” said Barry Williams, the company’s managing director.
“While Poundland remains a strong brand, serving 20m-plus shoppers each year, 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.
“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.”
