Twelve more Poundland stores are scheduled to close next week as part of a major overhaul. The bargain retailer is pulling down the shutters on dozens of stores as part of efforts to revive its fortunes following a £1 acquisition by Gordon Brothers earlier this year.
The struggling brand, which was previously owned by Pepco Group, recently recorded a 6.5 per cent decline in its revenue, which dropped from £830million for the six months ending up to March. Pepco Group put Poundland up for sale that month, and Gordon Brothers has pledged to pump £80million into the company as part of a turnaround plan.
Under the plan, Poundland is looking to close 68 stores, with the possibility of more to come. 49 stores this summer have already been confirmed, including 10 that have already ceased trading this week.
The brand will remain tied to leases on stores that are closing until its restructuring plan gets the go-ahead from the High Court and creditors, The Grocer reports.
Speaking about the closures, Poundland’s retail director Darren MacDonald said: “While our anticipated network of around 650-700 stores remains sizeable, it is of course, sincerely regrettable that we’re closing a number of stores to allow us to get us back on track.
“We entirely understand how disappointing it will be for customers when a store nearby closes, but we look forward to continuing to welcome them to one of our other locations.
“Work is underway to with colleagues through a formal consultation process in stores scheduled to close, exploring any suitable alternative roles.”
He added that the chain “remains a key player in UK discount retail, with millions of customers annually and a well-loved brand and proposition.”
The restructuring plans also include negotiating rent reductions at some stores.
Stores that closed on August 10
- Ammanford, Wales
- Birmingham Fort, Birmingham
- Cardiff Valegate, Wales
- Cramlington, Northumberland
- Leicester
- Long Eaton, Derbyshire
- Port Glasgow, Scotland
- Seaham, County Durham
- Shrewsbury, Shropshire
- Tunbridge Wells, Kent
Stores closing August 17
- Bedford, Bedfordshire
- Bidston Moss, Liverpool
- Broxburn, Scotland
- Craigavon, Northern Ireland
- Dartmouth, Devon
- East Dulwich, South East London
- Falmouth, Cornwall
- Hull St Andrews, Hull
- Newtonabbey, Northern Ireland
- Perth, Scotland
- Poole, Dorset
- Sunderland, Tyne and Wear
- Stafford, Staffordshire
- Thornaby, North Yorkshire
- Worcester, Worcestershire
12 stores are closing next week on Sunday, August 24
- Brigg, Lincolnshire
- Canterbury, Kent
- Coventry, West Midlands
- Newcastle
- Kings Heath, Birmingham
- Peterborough, Cambridgeshire
- Peterlee, County Durham
- Rainham, East London
- Salford, Manchester
- Sheldon, Birmingham
- Wells, Somerset
- Whitechapel, London
Stores closing August 31
- Blackburn, Lancashire
- Cookstown, Northern Ireland
- Erdington, Birmingham
- Kimberley Shopping Centre, Nottingham
- Horsham, West Sussex
- Holderness, Hull
- Kettering, Northhamptonshire
- Omagh, Northern Ireland
- Shepherds Bush, West London
- Southport, Merseyside
- Taunton, Somerset
Closing on September 14
- Rivergate Shopping Centre, Irvine
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