Poundland to Close 68 Stores and Cut Jobs in Restructuring Effort
Poundland, the British discount retailer, has announced plans to close 68 stores and two distribution centres, putting over 2,000 jobs at risk. The company, which was recently sold to US investment group Gordon Brothers for £1, operates over 800 outlets in the UK and Republic of Ireland, employing around 16,000 people.
According to a report in The Guardian, Poundland plans to reduce its store count to no more than 650 outlets. The company is also seeking rent reductions of between 15% and 75% on dozens of stores, and is asking landlords to cut rents to zero on up to 180 stores. This move has put the future of those outlets in doubt.
In a statement, Poundland confirmed that it would be stopping online sales, ditching its Perks loyalty app, and ceasing to sell frozen foods. The company will also reduce its range of chilled foods to items that make up its £3 meal deals, such as sandwiches, and essentials including milk. As a result, Poundland’s frozen and digital distribution centre at Darton, South Yorkshire, and its national distribution centre at Springvale in Bilston, West Midlands, will close later this year and in early 2026, respectively.
Bally Auluk, national officer for the Usdaw union, which represents hundreds of Poundland workers, expressed concern over the news, stating: “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 set to meet with the company this week to discuss the consultation process on job cuts and establish which stores are under threat.
The restructuring process, which has been sanctioned by the court, 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 was put up for sale by its owners, Pepco Group, in March due to “challenging trading conditions” and problems with its clothing and homeware ranges.
As reported by The Guardian, Gordon Brothers, a former owner of Laura Ashley, has pledged to invest up to £80m in Poundland to help turn the business around. 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 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.”
According to The Guardian, Williams also stated that it was “sincerely regrettable” that the plan included store and distribution centre closures, but that it was necessary to secure the future of thousands of jobs and hundreds of stores. The company aims to put its restructuring plan to creditors in August.
The news of Poundland’s store closures and job cuts comes as the retail sector continues to face challenges. As The Guardian previously reported, Poundland’s struggles are reflective of the difficulties faced by many retailers in the current market.
Original reporting by The Guardian can be found at: https://www.theguardian.com/business/2025/jun/17/poundland-shut-68-stores-restructuring-jobs-gordon-brothers.
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