Poundland is understood to have avoided falling into administration after a restructuring plan to save the business was approved by a judge at the High Court earlier this afternoon.
This intervention from the judiciary system comes days before the company was reportedly due to run out of money with some 800 stores being at risk of potential closure
The company has pleaded with a judge to approve a plan which would save it from entering administration, with barristers telling a hearing today that it is set to run out of money by September 7 if the scheme is not sanctioned.
High court judge Barry Williams sanctioned the discount retailer's restructuring plan in a move that was praised by Poundland's managing director Barry Williams for "securing the future of stores" on the high street.
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Poundland has reportedly been saved from falling into administration
| POUNDLANDMr Williams said: “Today’s decision is vitally important for Poundland, allowing us to stabilise the business, securing the future of hundreds of stores and thousands of jobs.
“We’d like to thank the court, and the engagement of our creditors, throughout this process. Despite the opportunity this ruling provides, I’m extremely mindful of its consequences for our colleagues, especially those leaving us as we streamline our store estate, distribution network and support teams.
“We acknowledge the direct impact our plans have had on them and re-confirm our commitment to do all we can to support them “Nevertheless, our wider attention must now turn to getting Poundland back to growth.
“In the coming weeks we will focus on getting us back on track, revamping ranges, lowering prices and creating the simpler and more focused Poundland we know our customers are eager for us to deliver."
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High streets have been hit by a wave of bank branch closures since the pandemic, on top of banks shutting down | PAFounded in Burton upon Trent, Staffordshire, in 1990, the high street staple is estimated to have approximately 14,700 staff members and operates around 800 stores across the country.
In June 2025, the business was sold by Pepco Group to Peach Bidco, a subsidiary of private equity firm Gordon Brothers, for just £1. Following this, the company then announced plans to shut 68 stores, which would impact around 1,000 staff.
As well as this, Poundland confirmed it would close its frozen and digital distribution site at Darton, South Yorkshire, later this year and another warehouse at Springvale in Bilston, West Midlands, early next year. This move is expected to cut a further 350 jobs.
Over the summer, three stores closed before July, and 37 locations have closed for good this month alone.
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Later this week, an extra 11 stores are due to close on Sunday, and a further store, in Irvine, North Ayrshire, Scotland, will close on September 14.
On top of this, another 16 stores are earmarked for closure, however these dates have yet to be confirmed.
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Store closures are ramping up | GETTY In written submissions for the hearing, Tom Smith KC, who represented Poundland Limited, cited that the retailer's "profitability has sharply declined" over the years.
He explained: "The group was performing well prior to and during the Covid-19 pandemic. However, the business has struggled in the last two years in an increasingly challenging UK retail environment.
"Its response to these challenges was to broaden its offering, including by adding chilled and frozen products and introducing online sales. However, these changes increased operating costs, as did increases in the UK national living wage and employer national insurance contributions."
Speaking the court, Mr Smith confirmed "a very significant amount of new money” would be flooded into the company thanks to the restructuring plan. Under the overthaul, Poundland will be given a £30million overdraft facility, and dates for the business to pay back loans pushed back to 2028.