BARGAIN chain Poundland has announced it is shutting 68 stores and two warehouses after being sold for £1.
More than 1300 jobs are at risk after the retailer announced up to 150 stores are potentially set to close as part of a new restructuring plan.
The discount chain, known for primarily selling products for £1, had been put on the market earlier this year after a sharp downturn in trading and has now been bought by investment firm Gordon Brothers for a "nominal fee". Sources close to the process have said this was £1.
At the moment, it operates around 800 stores and employs around 16,000 people.
On Tuesday, Gordon Brothers said its recovery plan "intended to deliver a financially sustainable operating model for the business after an extended period of under-performance".
As well as seeking rent reductions across a number of locations, Poundland said it anticipated an initial 68 store closures, and estimated its total estate would drop from around 800 stores to 650-700.
The bargain chain also plans to cease online sales and withdraw sales of frozen food from stores where it is currently offered.
Poundland's frozen and digital distribution centre at Darton, South Yorkshire, is set to close later this year, and its national distribution centre in Bilston, West Midlands, is expected to shut early next year.
However, the proposals are subject to approval by the High Court in August.
Poundland managing director Barry Williams 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 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.
"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."
Last month, Poundland reported revenues dropped by 6.5% to 985m Euros (£830m) for the six months to March, compared with a year earlier.
The brand suffered “challenges across all categories” and had 18 net store closures over the period.
