Poundland is to shut 68 shops and two distribution centres and aims to close at least 80 more stores, putting more than 2,000 jobs at risk.
The British company, which was sold last week to the US investment group Gordon Brothers for £1, has more than 800 outlets in the UK and the Republic of Ireland, employing about 16,000 people. It said it planned to reduce this eventually to no more than 650 outlets.
It also wants landlords to cut rents to zero on up to 180 stores – putting the future of those outlets in doubt – while also seeking rent reductions of between 15% and 75% on dozens more stores as part of a restructuring process that it will put to creditors in August.
Poundland is also stopping selling online, ditching its Perks loyalty app, ceasing to sell frozen foods and reducing its range of chilled foods to items that make up its £3 meal deals – such as sandwiches – and essentials including milk.
That will lead to the closure later this year of Poundland’s frozen and digital distribution centre at Darton, South Yorkshire, and its national distribution centre at Springvale in Bilston, West Midlands, in early 2026. Two other distribution centres, in Wigan and Harlow, will continue to operate.
Bally Auluk, national officer for the Usdaw union that represents hundreds of Poundland workers, said: “This is clearly devastating news for our members in Springvale and Darton distribution centres and a very worrying time for those working in stores.”
Auluk is meeting the company this week to discuss the consultation process on job cuts and establish which stores are under threat.
The court-sanctioned process applies to certain creditors in the UK, mainly landlords, and does not cover the group’s operations in the Republic of Ireland and Isle of Man, where it trades as Dealz.
Poundland, which was founded in 1990 with a store in Burton upon Trent, was put up for sale by its owners, Pepco Group, in March as a result of “challenging trading conditions” and problems with its clothing and homeware ranges.
Gordon Brothers, a former owner of Laura Ashley, said it would invest up to £80m in Poundland to help turn the business around.
Barry Williams, the 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 20 million-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.”
