Poundland announcement leaves Scots stores in jeopardy as bargain giant reveals 68 to close

Scottish Sun

6 hours ago

Read on for the full list of proposed changes
CLOSING DOWN Poundland announcement leaves Scots stores in jeopardy as bargain giant reveals 68 to close
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POUNDLAND is set to close 68 stores across the UK under a restructuring plan - leaving Scots branches in jeopardy.
It comes after the discount chain was was sold for just £1 last week.
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Poundland is planning to close 68 stores across the UK in a bid to save the chain
Credit: PA
And it was expected that a major shake-up would be needed to rescue the struggling retailer.
Poundland has made an announcement which outlines a series of changes in a bid to keep the business afloat.
But these will need to be approved by the High Court in August.
The company operates around 800 stores and employs about 16,000 people.
It's now expected that the chain will keep around 650 to 700 of those branches across the country.
Other changes include getting rid of frozen food items, ditching its royalty scheme app and no longer selling products online.
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."
Walkthrough Poundland's first £1million store
Poundland has a total of 57 stores in Scotland.
Investment fund Gordon Brothers, the ex-owner of Laura Ashley, agreed to buy the business for £1 last week.
It said it would go ahead with the proposed restructuring plans and turnaround of the struggling business.
The plans will need to be approved by the High Court before they can go ahead.
What has been proposed? Closing 68 stores and negotiating rent reductions at a number of other locations
Getting rid of frozen food products at all stores where they're currently sold
Reducing the number of chilled food items sold
Closing its frozen and digital distribution centre in Darton, South Yorkshire, later this year
Closing its national distribution centre in Bilston, West Midlands, in early 2026
No longer selling products on its website
Providing more womenswear and seasonal ranges
Gordon Brothers has agreed to provide up to £80million in financing to Poundland.
The retailer was put up for auction in March, with Homebase owner Hilco then reported among the bidders.
The owner had reported weak Poundland sales over the past six months and cut the brand's trading guidance for the year as a result.