Poundland confirms 68 stores to close as part of restructuring plan - and 1,300-plus jobs are at risk

The discount chain has confirmed further details of its recovery plan to return to growth following its acquisition by American investment firm Gordon Brothers last Thursday.

The plan aims to deliver a financially sustainable operating model for the business after an extended period of under-performance.

Poundland’s restructuring plan and broader recovery plan, if approved in court, is expected to result in the closure of 68 stores and two distribution centres.

The company, which operates around 800 stores in total, says it expects to end up with about 650 to 700 stores at the end of the overhaul which also includes seeking rent reductions, but it has stressed the court court process only applies to creditors in the UK and does not affect Poundland’s operations in the Republic of Ireland and Isle of Man, where it trades as Dealz.

The restructuring process will also see Poundland withdraw from the retail sale of frozen food in stores where it’s currently offered. It is also reducing its chilled food offer which in future will be anchored around its £3 meal deal and other essentials such as milk.

Yesterday the company confirmed it has earmarked its Springvale Bilston Distribution Centre for closure in early 2026 with delivery volumes absorbed by existing distribution centres in Wigan and Harlow; and Poundland has also now revealed it intends to close its frozen and digital distribution centre at Darton, South Yorkshire, later this year. Around 350 workers are believed to be at risk of losing their jobs at both warehouse centres.

The company's digital presence will see Poundland.co.uk converted from a transactional website to a brand website, and the Perks app retired as the business focuses on its in-store offering for customers.

Meanwhile, previous lost ranges such as womenswear, key seasonal general merchandise and product categories customers have missed will be returned.

Impacted creditors have been contacted to inform them of the plan and the court timetable is expected to conclude in late summer, the retailer said.

Barry Williams, managing director of Poundland, said: “It’s no secret that we have much work to do to get Poundland back on track.

“While Poundland remains a strong brand, serving 20m-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.”

Traditionally known for its £1 products, Poundland was put up for sale by its Poland based owners Pepco Group earlier this year after a sharp downturn in trading.

The business, founded by Willenhall father and son Keith and Steve Smith and fellow market trader Dave Dodd, had struggled since the pandemic, suffering as a result of the rise in online shopping and increasing competition from the likes of B&M, Home Bargains and The Range and budget supermarkets.

Poundland has a raft of stores in the West Midlands close including outlets in Wolverhampton, Walsall, Bloxwich, Willenhall, Bilston, Wednesbury, Tipton, West Bromwich, Dudley, Brierley Hill and Merry Hill shopping centre.