Poundland has confirmed the details of its restructure plan, with up to 150 stores and two distribution centres set to close, subject to approval by a court.
Poundland said it planned an initial 68 store closures and anticipated the number would rise as it sought rent reductions across a number of other sites. It said the process would lead over time to an anticipated estate of 650-700 stores, down from about 800 today.
Following Poundland’s acquisition by investment firm Gordon Brothers last week, the variety discounter 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, followed by its national distribution centre at Springvale in Bilston, West Midlands, in early 2026.
Delivery volumes will be absorbed into its existing distribution centres in Wigan and Harlow.
Poundland will also retire its Perks loyatly app, which rolled out nationwide last year.
It plans to restore ranges lost during the transition to sourcing products through former parent Pepco Group, in order to provide a greater depth of womenswear in its clothing offer, and return key seasonal general merchandise ranges to their former breadth.
Impacted creditors have been contacted to inform them of the plan and the court timetable is expected to conclude in late summer, according to Poundland.
A reduced chilled food offer will in future be anchored around Poundland’s £3 meal deal and other essentials such as milk.
“It’s no secret that we have much work to do to get Poundland back on track,” said Poundand MD Barry Williams.
“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.
“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.”
Poundland said the court-sanctioned process applied to creditors in the UK. It said it did 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.
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