Poundland plans 68 retailer closures placing greater than 1,000 jobs in danger

Price range 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 lease reductions from landlords which, along with leases expiring on some shops, might lead to 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 offered for a pound final week to US funding agency Gordon Brothers.

The restructuring plan nonetheless requires approval by a court docket.

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

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

“Whereas Poundland stays a powerful model, serving 20m-plus customers annually, our efficiency for a major interval has fallen wanting our excessive requirements and motion is required to allow the enterprise to return to progress.”

Poundland additionally mentioned it will cease promoting frozen meals, and as an alternative give attention to its £3 meal deal and important groceries corresponding to milk.

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

The chain additionally mentioned it will add a “larger depth of womenswear in its clothes supply, the return of key seasonal normal merchandise ranges and the restoration of product classes clients have missed”.

Poundland’s former proprietor, Polish agency Pepco, confirmed final week that it had offered the model for a “nominal” sum to Gordon Brothers, a world funding agency which previously owned vogue 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.