Poundland to Shut 68 Shops and Scrap Frozen Food
Poundland is set to shut 68 shops as part of a major restructuring after the troubled discounters was snapped up by an investment firm for just £1. The group said on Tuesday its store numbers would fall to between 650 to 700 ‘over time’ if its restructuring plans are court approved.
It did not provide details of the proposed locations for Poundland store closures, but added that it would also seek ‘rent reductions’ at other sites.
No details of the number of jobs potentially affected were included in the update.
As well as shop closures, Poundland said it was looking to axe its frozen food offerings in stores. The retailer plans to focus its efforts on its £3 meal deal in its chilled section, and providing other household essentials like milk.
In a blow to staff, the group also wants to close Poundland’s frozen and digital distribution centre at Darton, South Yorkshire later this year and its national distribution centre at Springvale in Bilston, West Midlands in early 2026.
Poundland said its deliveries would be ‘absorbed’ into existing distribution centres in Wigan and Harlow.
The retailer said it also plans to simplify its presence online. If the plans get the green-light, shoppers will no longer be able to buy anything via the Poundland.co.uk website.
Poundland’s website will become a ‘brand website’, rather than a transactional one enabling shoppers to purchase items online.
The group’s Perks app will also be scrapped if the proposals go ahead, with the retailer claiming it wanted to focus on its in-store offerings for customers.
Poundland said it wanted to revive ‘ranges lost during the transition to Pepco-sourced products – for example a greater depth of womenswear in its clothing offer, the return of key seasonal general merchandise ranges and the restoration of product categories customers have missed.’
Affected creditors have been contacted to inform them of the plan and the court timetable is expected to conclude in late summer, Poundland said on Tuesday.
Barry Williams, managing director of Poundland said: ‘It’s no secret that we have much work to do to get Poundland back on track.
‘While Poundland remains a strong brand, serving 20million-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. 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.’
The court-sanctioned process applies to creditors in Britain. It does not cover Poundland’s operations in the Republic of Ireland and Isle of Man, where it trades as Dealz nor trade suppliers in either the UK or Republic of Ireland.
Poundland currently has 800 shops across Britain and the Republic of Ireland.
Last week, investment firm Gordon Brothers acquired Pepco Group’s struggling Poundland business for a ‘nominal’ sum, of reportedly just £1.
Gordon Brothers said it would provide up to £80million in financing to ‘support the management team’s proposed restructuring and turnaround plan for the British discount retailer’.