Poundland to close 68 stores as part of major restructuring plan

On Tuesday, Poundland said it is seeking court approval for a restructuring plan to shut 68 shops and secure rent reductions on dozens more.

The company also plans to close its frozen and digital distribution site in Darton, South Yorkshire, later this year, and another warehouse in Springvale, Bilston, West Midlands, in early 2026.

The rent reductions coupled with upcoming lease expiries mean as many as 70 additional stores could be at risk of closure.

The retailer said it expects to end up with between 650 and 700 stores after the overhaul. It currently runs around 800 stores across the UK and Ireland but stressed Irish shops have not been affected.

The overhaul comes after Poundland was sold by South African retail group Pepco to Gordon Brothers, a US-based investment firm specialising in restructuring struggling businesses.

Gordon Brothers said the changes were necessary to "secure the long-term future of the business" and help Poundland adapt to shifting consumer demand.

Poundland currently employs around 16,000 people. Around 350 people will be affected by the warehouse closures. The company has not disclosed how many store workers will be impacted.

Barry Williams, managing director, acknowledged the scale of the challenge ahead and said: "It's no secret that we have much work to do to get Poundland back on track."

While describing the planned closures as "regrettable", Williams stressed they were "necessary if we're to achieve our goal of securing the future of thousands of jobs and hundreds of stores."

He added: "While Poundland remains a strong brand, serving over 20 million shoppers each year, our performance for a significant period has fallen short of our high standards. Action is needed to enable the business to return to growth."

A spokesperson for Gordon Brothers said: "This restructuring will create a stronger and more sustainable Poundland, focused on delivering value and convenience to customers in communities across the UK."

Poundland has also announced it will stop selling frozen food as part of a major shake-up. Instead, the discount chain will focus on its £3 meal deal and everyday essentials like milk.

The company also said its website, poundland.co.uk, will no longer take online orders. Instead, it will be used for browsing, branding, and promoting offers.

In stores, Poundland plans to improve its clothing range by adding more women’s fashion. It also aims to bring back popular seasonal items and other products that customers have missed.

The changes come after Poundland was sold last week by its former owner, Polish company Pepco, to global investment firm Gordon Brothers — the former owner of fashion label Laura Ashley. Pepco described the sale price as "nominal."

Pepco had owned Poundland since 2016, but the chain has struggled with falling sales.

The company also warned that higher employer National Insurance contributions, introduced in April, would put even more pressure on the business.