Poundland Outlines Recovery Plan To Return The Business To Growth

Following its acquisition by Gordon Brothers, Poundland today confirmed details of its recovery plan to return the business to growth.

In support of a broader business turnaround to position Poundland for future success, it is launching a restructuring plan, which is a foundational element in Poundland’s recovery plan, intended to deliver a financially sustainable operating model for the business after an extended period of under-performance.

If approved by the court, Poundland’s restructuring plan, alongside the broader recovery plan, is expected to result in:

• The closure of 68 stores and rent reductions across a number of other locations which will result, over time, in an anticipated network of around 650-700 stores.
  
  
• Poundland’s withdrawal from the retail sale of frozen food in the stores where it’s currently offered.
  
  
• The reduction of its chilled food offer which will in future, be anchored around its market-leading £3 meal deal and other essentials such as milk.
  
  
• The closure of Poundland’s frozen and digital distribution centre at Darton, South Yorkshire later this year and its national distribution centre at Springvale in Bilston, West Midlands in early 2026. Delivery volumes from a streamlined Poundland will be absorbed into its existing distribution centres in Wigan and Harlow. 
  
  
• The simplification of Poundland’s digital presence, converting Poundland.co.uk from a transactional website to a brand website, and the retirement of its Perks app as the business focuses on its instore offer for customers. 
  
  
• The return of ranges lost during the transition to Pepco-sourced products – for example a greater depth of womenswear in its clothing offer, the return of key seasonal general merchandise ranges and the restoration of product categories customers have missed. 

Impacted creditors have been contacted to inform them of the plan and the court timetable is expected to conclude in late summer.

Barry Williams, managing director of Poundland said: “It’s no secret that we have much work to do to get Poundland back on track.

“While Poundland remains a strong brand, serving 20m-plus shoppers each year, our performance for a significant period has fallen short of our high standards and action is needed to enable the business to return to growth.

“It’s sincerely regrettable that this plan includes the closure of stores and distribution centres, but it’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores.

“It goes without saying that if our plans are approved, we will do all we can to support colleagues who will be directly affected by the changes.”

The court-sanctioned process applies to creditors in the UK. It does not cover Poundland’s operations in the Republic of Ireland and Isle of Man, where it trades as Dealz nor trade suppliers in either the UK or Republic of Ireland.

Source : Poundland

Image : Poundland 

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