Poundland closing 37 stores in August as restructuring plan gets underway

Poundland is set to close 37 stores next month in a restructuring and recovery plan under new owners Gordon Brothers.

They are among 68 stores that were earmarked for closure in a restructuring plan drawn up after Gordon Brothers acquired Poundland from Pepco Group for a nominal sum in June.

The 68 included three stores that Poundland had already closed this year, in Swiss Cottage, Chiswick and Southampton West Quay.

It means Poundland has now confirmed the location and planned closure dates of 40 of the 68 stores.

The restructuring plan is subject to High Court approval, with a hearing due to take place in the final week of August.

Of the 37 stores closing in August, 25 are scheduled to cease trading ahead of that hearing. A Poundland spokesman said that while they would close to customers, the leases would not be surrendered until after the hearing. He said Poundland had spread the planned closures over a number of weeks to manage the programme.

Poundland has anticipated further closures over time. It expects the estate to shrink from about 800 at the time the plan was announced in June to between 650 and 700.

Poundland retail director Darren MacDonald said: “While our anticipated network of around 650-700 stores remains sizeable, it is of course sincerely regrettable that we’re closing a number of stores to allow us to get us back on track.

“We entirely understand how disappointing it will be for customers when a store nearby closes, but we look forward to continuing to welcome them to one of our other locations.”

MacDonald said affected staff had entered a formal consultation “exploring any suitable alternative roles”.

Poundland’s restructuring plan also includes removing frozen food from stores, halting online trading and retiring its Perks loyalty app, which rolled out across the UK last year.

Poundland’s frozen and digital distribution centre at Darton, South Yorkshire, is due to close this year, followed by its national distribution centre at Springvale in Bilston, West Midlands, in early 2026. Stores will be served from its other two distribution centres in Wigan and Harlow.

Gordon Brothers has agreed to invest £80m in the turnaround.

A recent trading update from Pepco Group revealed that between 1 April and the completion of the sale on 12 June, Poundland revenue fell 10.3% to €347m. Poundland’s like-for-like sales were down 7.1% in the same period. 

At the same time the Poundland estate shrank by 19 stores, from 818 to 799.

Poundland stores closing in August 2025

Closing on 10 August:

Closing on 17 August:

Closing on 24 August: