Poundland, the well-known discount retail chain, is closing several of its stores in 2025 as part of a major restructuring plan under ownership. The chain will shut 68 stores across the UK by the end of the year, affecting around 1,000 jobs. This move is a part of efforts to stabilize and rebuild the struggling business after being sold for a nominal 1 euro to US investment firm Gordon Brothers.
The closures come after Poundland’s financial troubles worsened over the past two years. The company faced a decline in revenue and challenging trading conditions. The previous owners, Pepco Group, decided to sell Poundland earlier this year, as the company reported a pre-tax loss of 35.7 million euros last year. Gordon Brothers has committed to investing 90 million euros to revive the brand and its operations.
Among the stores closing on August 31 are locations in Blackburn (Lancashire). Cookstown (Northern Ireland), Erdington (West Midlands), Kimberley (Nottinghamshire), Horsham (West Sussex), Hull Kingston retail park (East Yorkshire), Kettering (Northamptonshire), Omagh (Northern Ireland), Shepherd’s Bush (Greater London), Southport (Merseyside), and Taunton (Somerset). Another store in Irvine, Scotland, will close on September 14. Several other closures will follow later this year, with some store locations yet to be disclosed.
The company also plans to close two distribution centers, one in Barton, South Yorkshire later this year and another in Bilston, West Midlands, early next year. These closures are expected to result in approximately 350 warehouse job losses. Additionally, Poundland has ceased its online sales operations as part of the restructuring.
Barry Williams, Poundland’s managing director, admitted the company’s performance had fallen short of expectations. He said, “It’s no secret that we have much work to do to get Poundland back on track.” Williams emphasized that Poundland remains a strong brand serving over 20 million shoppers annually. The company plans to grow by expanding product ranges, reducing prices, and simplifying the shopping experience.
Gordon Brothers’ acquisition of Poundland was approved by the high Court after the retailer warned it would run out of funds by early September without court approval of the restructuring plan. The court ruling prevented the company from going into administration, allowing the turnaround plan to move forward.
Poundland’s restructuring also involves negotiating rent reductions for certain stores and shifting product pricing to standardized 1,2 and 3 euro price points. The company intends to focus more on womenswear and seasonal items while cutting down on other categories. The loyalty program will end on September 16, but customers can redeem their points until January next year.
Overall, the restructuring marks a significant contraction of Poundland’s presence on the high street. However, the new owners are investing heavily to restore the brand and adjust to changing market conditions. The company aims to emerge stronger and more resilient in the competitive discount retail sector.
