Budget chain Poundland has said it will be closing 68 stores as part of a turnaround plan to revive its fortunes. A distribution centre at Darton, South Yorkshire and its national distribution centre at Bilton in the West Midlands have also been earmarked for closure in early 2026. In addition, Poundland is seeking rent reductions from landlords which, together with lease expiries, could result in an additional 70 or so store closures in the future. Poundland wassold for a pound last weekto the US investment firm, Gordon Brothers, after struggling with "challenging trading conditions". Poundland currently has 792 stores and employs around 16,000 people. The restructuring plan still requires approval by a court. "It's no secret that we have much work to do to get Poundland back on track," said Barry Williams, Poundland managing director. While it was "regrettable" the turnaround plan included closures, he said this was "necessary if we're to achieve our goal of securing the future of thousands of jobs and hundreds of stores". "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."
New Poundland owners plan 68 store closures
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"Poundland to Close 68 Stores as Part of Restructuring Plan"
Bbc News
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TruthLens AI Summary
Poundland, the budget retail chain, has announced plans to close 68 of its stores as part of a strategic turnaround initiative aimed at revitalizing the business. This decision comes in the wake of the company's acquisition by the US investment firm Gordon Brothers for just one pound, following a period of difficult trading conditions that have impacted its performance. In addition to the store closures, Poundland will also be shutting down its distribution centre in Darton, South Yorkshire, along with its national distribution centre located in Bilton, West Midlands, with these closures set to take effect in early 2026. The chain, which currently operates 792 stores and employs approximately 16,000 individuals, is also negotiating for rent reductions with landlords. This could lead to an additional 70 store closures in the near future as leases expire, further impacting the retail landscape in the UK.
Barry Williams, the managing director of Poundland, acknowledged the challenges the company faces and emphasized the need for these drastic measures to secure the future of the brand and its workforce. He expressed regret over the closures but underscored their necessity in the broader context of achieving long-term stability and growth for the business. Williams noted that while Poundland remains a popular destination for over 20 million shoppers annually, its recent performance has not met the high standards expected. The proposed restructuring plan is still pending court approval, highlighting the complex nature of such a significant operational overhaul. The outcome of these efforts will be crucial not only for the company's survival but also for the jobs of thousands of employees and the overall health of the retail sector in which it operates.
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