Poundland store set to close later this month - here's where and when
Poundland has confirmed its Merry Hill branch is to close later this month.
The discount chain has confirmed its branch at Merry Hill shopping centre in Brierley Hill will close for good on July 18.
Poundland bosses have said the closure is not related to the recent company restructuring proposals outlined after the business was sold to American investment firm Gordon Brothers, which owns brands including Laura Ashley.
Rather it was because the company was unable to agree lease terms to continue trading there, Poundland told the Express & Star.
The high street bargain retailer, known for its £1 products, expects to close around 100 stores as part of restructuring plans following the sale of the business by Poland based Pepco Group, which put the company on the market due to a sharp downturn in trading.
The proposed restructure needs approval from the High Court in London and this is expected to take place towards the end of August, Poundland said.
The company, which has its roots in the West Midlands having been founded by Steve Smith from Willenhall along with his late dad Keith, has a raft of stores in the Black Country including outlets in Wolverhampton, Walsall, Bloxwich, Willenhall, Bilston, Wednesbury, Tipton, West Bromwich, Dudley, Brierley Hill and at Merry Hill shopping centre.
Staff at the stores currently face an uncertain future as they wait for news on the court hearing and restructuring plans and to find out which stores will be among those earmarked for closure.
Poundland stressed no decisions have been made regarding which stores will close as a result of the process but it has now confirmed the Merry Hill branch will be shutting for good this month following decisions unrelated to the restructure.
A spokesperson for Poundland said: "The Merry Hill store is closing on July 18 but that’s not related to the proposals outlined – it’s because we’ve been unable to agree lease terms that would enable us to keep trading there. With around 800 stores across the UK and Ireland, we constantly review our store portfolio as leases expire or come up for renewal and that’s the situation at Merry Hill.
"All colleagues were briefed about that some weeks ago."
He reiterated the Merry Hill closure "sits outside the restructuring process" and added: "Whenever a store closes in these circumstances, we work hard to look for other opportunities and that work is underway at Merry Hill."
Poundland, one of the most well-known names on the High Street, has more than 800 UK stores and around 16,000 staff but it has been struggling to compete with other discount stores such as B&M, Home Bargains, and The Range as well as budget supermarkets like Aldi and Lidl which are popular for their 'middle aisles' filled with special promotions and a wide range of non food items.
Bosses at Poundland reported revenues dropped by 6.5 per cent to 985 million euros (£830 million) for the six months to March this year, compared with a year earlier.
