Poundland will run out of money in days if its restructure plan is not approved, a lawyer for the retailer told the High Court today.
In written submissions, Tom Smith KC said: “The latest liquidity forecast shows that the group will run out of cash in the week ending 7 September 2025.”
He said if the restructure was not approved by the court, the company’s directors would likely place it into administration by Friday, The Sun reported.
Poundland’s restructure plan involves the closure of 68 stores, 40 of which have ceased trading in recent weeks. It also involves ending online sales, closing its loyalty programme, pulling frozen and chilled food ranges from stores, and closing two distribution centres.
Investment firm Gordon Brothers, which bought Poundland from Pepco Group for £1 in June, has agreed to invest £90m to turn around the business, made up of an initial £60m and an additional £30m once the restructuring plan has been successfully implemented.
Pepco Group is providing a further £30m revolving overdraft facility subject to successful implementation of the restructuring plan and in return for a 30% equity stake.
Poundland has said more stores will close over time as leases expire, taking its estate from 800 to between 650 and 700 stores.
As revealed by The Grocer last week, the variety discounter is going back to pound shop basics in stores to win back shoppers, with its fmcg range reduced by about a half and split into three price points: £1, £2 and £3.
Following a creditor vote on the restructure plan last week, a Poundland spokesman said: “Our restructuring plan is critical to our future as we look to preserve hundreds of stores and thousands of jobs. We have maintained an open, transparent dialogue with creditors through the process.”
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