Poundland plans 68 store closures putting more than 1,000 jobs at risk

Funds chain Poundland has mentioned it will likely be closing 68 shops as a part of a turnaround plan to revive its fortunes, placing greater than 1,000 jobs in danger.

A distribution centre at Darton, South Yorkshire and its nationwide distribution centre at Bilston within the West Midlands have additionally been earmarked for closure.

As well as, Poundland is searching for hire reductions from landlords which, along with leases expiring on some shops, may end in an extra 70 or so store closures sooner or later.

Poundland, which presently has 792 shops within the UK and Eire and employs round 16,000 folks, was sold for a pound last week to US funding agency Gordon Brothers.

The restructuring plan nonetheless requires approval by a court docket.

“It is no secret that we now have a lot work to do to get Poundland again on monitor,” mentioned Barry Williams, Poundland managing director.

Whereas it was “regrettable” the turnaround plan included closures, he mentioned this was “needed if we’re to realize our objective of securing the way forward for 1000’s of jobs and a whole lot of shops”.

“Whereas Poundland stays a robust model, serving 20m-plus buyers every year, our efficiency for a big interval has fallen wanting our excessive requirements and motion is required to allow the enterprise to return to progress.”

Poundland additionally mentioned it could cease promoting frozen meals, and as an alternative deal with its £3 meal deal and important groceries akin to milk.

It mentioned its web site poundland.co.uk would cease taking on-line orders and as an alternative swap to looking and branding, or promoting promotions, as an alternative.

The chain additionally mentioned it could add a “higher depth of womenswear in its clothes provide, the return of key seasonal common merchandise ranges and the restoration of product classes clients have missed”.

Poundland’s former proprietor, Polish agency Pepco, confirmed final week that it had bought the model for a “nominal” sum to Gordon Brothers, a worldwide funding agency which previously owned trend label Laura Ashley.

Pepco had owned Poundland since 2016, however gross sales on the chain have been struggling. Pepco had additionally warned that the elevated employer Nationwide Insurance coverage contributions which started in April would add to stress on the chain.