Poundland, the popular discount store chain, has announced plans to close 68 of its stores as part of a major turnaround strategy.
In addition to the store closures, two key distribution centres—one in Darton, South Yorkshire, and the national hub in Bilston, West Midlands—are also set to shut down.
Poundland is also negotiating rent reductions with landlords. If unsuccessful, and combined with expiring leases, around 70 more stores could potentially close in the near future.
The news follows the recent sale of Poundland for just £1 to U.S. investment firm Gordon Brothers. The sale came after the company faced ongoing financial difficulties.
Currently, Poundland operates 792 stores and employs approximately 16,000 people.
The restructuring plan still needs to be approved by the courts.
Poundland’s managing director, Barry Williams, acknowledged the scale of the challenge:
“It’s no secret that we have much work to do to get Poundland back on track.”
He called the closures “regrettable” but necessary to protect thousands of jobs and hundreds of stores.
Despite serving more than 20 million customers annually, Williams admitted the company’s performance has not met expectations and “action is needed” to return to growth.
As part of the strategy, Poundland will also stop selling frozen food, shifting focus to value meal deals and staple groceries like milk.
Its website, poundland.co.uk, will no longer offer online shopping. Instead, it will be used for browsing products and promotional content.
Poundland also plans to expand its women’s clothing range, bring back key seasonal items, and reintroduce product categories that customers have missed.
Last week, previous owner Pepco, a Polish retail group, confirmed the sale to Gordon Brothers. Pepco, which had owned Poundland since 2016, said the sale was for a “nominal” amount. The company cited rising costs, including April’s increase in National Insurance contributions, as additional financial pressure on the business. Photo by ThisIsAce, Wikimedia commons.