Hundreds of jobs at risk as Poundland confirms Bilston distribution centre could close
Poundland warehouse workers have been left in shock at news the Springvale Distribution Centre, Bilston, is earmarked for closure with hundreds of jobs at risk.
The news comes just days after it was confirmed that US investment firm Gordon Brothers had taken over the discount retail chain that was founded in the West Midlands.
It's understood workers were told on Friday that the Springvale Bilston Distribution Centre would be closing early in 2026 as part of a restructure of the struggling business, which was sold by Poland-based Pepco Group for £1.
A spokesperson for Poundland said in a statement: "We outlined business recovery plans last week that included the possible closure of our Springvale Bilston Distribution Centre in early 2026, with delivery volumes currently handled at Bilston absorbed into our other centres in Wigan and Harlow. At the moment, this remains a proposal, but we’ve provided colleagues who work at Springvale with early notification.
"If the plans materialise, we would of course, work with our colleagues in a formal consultation process to explore any suitable alternative roles."
Around 250 workers are employed at the Bilston Distribution Centre but it's understood that for the last six to 12 months the centre has been quieter than it always was.
One worker, who has worked for Poundland for more than 20 years, told the Express & Star: "We were fearing the worst because of how quiet it was, there has been very little work to do and they've been offering holidays and days off or half days - as there's been not enough work and too many staff."
The employee, who asked not to be named, added: "Colleagues are concerned about their jobs, especially those with mortgages and children.
"Times are hard whatever age you are to find a new job.
"People are concerned about whether they should wait it out for redundancy or jump ship to try to find something else."
Another employee, who also wanted to remain anonymous, said: "I was shocked, to be honest, because it was surprising news to hear, although I've been here for a year-and-a-half and I could see there were signs of struggle.
"There were signs that the stock was going down and there were less people being brought in on agency and just less people in and around the place.
"They've told us that the place is closing and not much else after that, so I'll probably just go out and get another job, but I am disappointed as the people are friendly and it was a nice place to work."
Another worker, who has been with the company for getting on for 30 years, told how workers were informed of the closure plan at a meeting on Friday just after the deal between Pepco Group and Gordon Brothers was officially announced on Thursday.
He said: "I've been expecting it but a lot of people were shocked."
A colleague added: "I can't say I'm surprised as I don't think it's been that well run for ages. There were times when there would be 40 truck drivers turning up, but only 30 trucks, so people would have to go home without work.
"It's sad that it's closing, but I also am not surprised."
Poundland, known for its £1 products, was put on the market earlier this year after a sharp downturn in trading.
Gordon Brothers has not responded to requests for comment since the deal was announced last week but it's believed the sale will also result in the closure of around 100 stores as part of a restructuring plan.
Poundland was set up by Willenhall father and son market traders Keith and Steve Smith, and fellow market trader Dave Dodd, with the first store opened in Burton-on-Trent on December 13, 1990.
The brand, which grew to become one of the most popular names on the high street with around 800 stores, was taken over by Pepco in 2016 but in recent years it has suffered since the pandemic and due to the rise of online shopping and increasing competition from the likes of B&M, Home Bargains and The Range as well as budget supermarkets.
Poundland has a host of stores in the West Midlands close to where it all began including outlets in Wolverhampton, Walsall, Bloxwich, Willenhall, Bilston, Wednesbury, Tipton, West Bromwich, Dudley, Brierley Hill and the Merry Hill shopping centre.
It has not yet confirmed which stores are expected to close as part of the restructure as rent reductions are being sought in some cases.
