Poundland set to run out of money in DAYS with 800 shops at risk - full list of closures announced

Poundland, founded in Burton upon Trent, Staffordshire, in 1990, has approximately 14,700 staff members and operates around 800 stores.

The discount retailer Poundland faces financial collapse and could exhaust its cash reserves by 7 September unless the High Court sanctions a critical restructuring proposal, legal representatives warned during a Tuesday hearing.

Barristers informed Sir Alastair Norris that the company's directors would probably initiate administration proceedings by Friday should the court reject the rescue scheme.

Tom Smith KC, representing Poundland Limited, stated: "The latest liquidity forecast shows that the group will run out of cash in the week ending September 7 2025."

The restructuring proposal represents the retailer's final opportunity to avoid insolvency after experiencing severe financial decline over the past 24 months amid challenging retail conditions.

The rescue package involves shuttering 68 retail locations and two distribution centres, placing approximately 1,350 positions at risk across the business.

Gordon Brothers, which acquired Poundland through its subsidiary Peach Bidco for £1 in June, has committed £90million to stabilise the retailer.

Tom Smith KC told the court: "The plan will release a further £60 million of funding, and that is in addition to the £30million that has already gone in following the purchase that took place on June 12."

The company will cease operations at its frozen goods and digital distribution facility in Darton, South Yorkshire, before year-end. Additionally, the Springvale warehouse in Bilston, West Midlands, faces closure in early 2026.

The discount retailer, which has already shut dozens of sites this year, is undergoing major changes under its new owners Gordon Brothers

. A total of 48 branches are expected to close permanently this month alone.

So far in August, 25 Poundland stores have already closed. With today’s 12 added to the list, the number of closures this month now stands at 37.

Although the chain still operates around 800 stores nationwide, this figure is set to fall sharply, with as few as 650 outlets remaining once the overhaul is complete.

Closures announced already include a further wave on August 31, when more Poundland stores will shut their doors

Closures on August 31:

• Blackburn
• Cookstown
• Erdington
• Kimberley Kimberley Shopping Centre, Nottingham
• Horsham
• Hull Holderness
• Kettering
• Omagh
• Shepherds Bush
• Southport
• Taunton

The Poundland stores already closed last week:

• Brigg
• Canterbury
• Coventry
• Newcastle
• Kings Heath
• Peterborough
• Peterlee
• Rainham
• Salford
• Sheldon
• Wells
• Whitechapel

These shutdowns coincide with Poundland's decision to terminate online trading through its website.

The retailer recorded pre-tax losses of approximately £35.7 million during the 2024 financial year, highlighting its deteriorating performance in a difficult economic climate.

Under the proposed restructuring, Poundland's obligation to repay £276.5million in loans due on 1 September would be deferred for three years.

The plan also includes provision for a £30million overdraft facility to support ongoing operations.

Many locations operate unprofitably due to excessive rental costs, with the company paying above-market rates at numerous sites, according to court submissions.

Mr Smith explained in written documents that the retailer's financial situation had "significantly deteriorated during the last two years" whilst struggling in a "difficult retail and economic environment".