Introduction to Poundland’s Restructuring Plans
The new owner of Poundland, Gordon Brothers, has announced plans to close 68 shops and two sales centers as part of a restructuring effort. This move also includes stopping frozen food and online sales. The company aims to deliver a financially sustainable operating model after a long period of underperformance.
Job Implications and Current Employment
The planned closures are expected to put 1,350 jobs at risk. Currently, Poundland employs 16,000 people across the entire business. The company is also exploring plans to cut rents in its stores. If creditors support the restructuring, 250 Poundland locations will see their rent bills reduced to zero by the end of August.
Future Business Focus
Poundland’s future focus will be on profitable business, with web-based operations limited to browsing. Due to this new priority and the departure from most frozen and chilled products, the company will no longer need its frozen and digital sales center in Darton, South Yorkshire, which is set to close later this year. Additionally, Poundland plans to close its national sales center in Bilston, West Midlands, in early 2026.
Store Numbers and Approval
After the overhaul, Poundland expects to have between 650 and 700 shops, provided the court approves the plans. The company currently operates around 800 shops in the UK and Ireland, with Irish shops being traded as a separate deal.
Challenges and Future Growth
Poundland has faced challenges in recent years, including increased competition, poorly managed stocks, and rising costs. Managing Director Barry Williams acknowledged the need for significant changes to return the company to growth. While the closure of shops and sales centers is regrettable, it is necessary to secure the future of thousands of jobs and hundreds of businesses. The company will support colleagues directly affected by the changes if the plans are approved.
