Latest news with #StephanBorchert
Yahoo
2 days ago
- Business
- Yahoo
June 2025 shop closures
More shops are set to disappear from British high streets, after more than 13,000 closures last year. From January to May, scores of shops shuttered, including those belonging to Morrisons to New Look and WH Smith. Sadly, the trend is set to continue in June, with a number of businesses shutting for good in the coming weeks. Here are the main shop closures in England, Scotland and Wales this month. The discount high street chain plans to close nine shops this month. The following shops will shut: Milford Haven, Pembrokeshire - June 26 Perth - June 28 Chester Le Street, County Durham - June 28 Arbroath, Angus - June 28 Kidwelly, Carmarthenshire - June 28 Pershore, Worcestershire - June 28 Normanton, West Yorkshire - June 28 Peterhead, Aberdeenshire - June 28 Shaftesbury, Dorset - June 28 The retailer previously said it would have to close 'loss-making' stores following financial struggle. In February, private equity firm Modella Capital bought The Original Factory Shop, launching a restructuring effort to renegotiate rent costs at the 88 stores. Modella Capital also bought WH Smith and Hobbycraft. The bargain store chain is set to shut an outlet this month, with a further 200 shops at risk. A shop in Surrey Quays is set to close on June 11. Pepco Group, the parent firm of Poundland, has said it expects to sell the chain by the end of September. In May, the Telegraph reported that up to 200 Poundland stores could face closure as part of a rescue sale. Stephan Borchert, chief executive of Pepco, said: 'At Poundland, trading remains challenging, which is reflected in a profit outturn below expectations for H1 and a weaker outlook for the full year.' Poundland revenues dropped by 6.5 per cent to 985 million euros (£830 million) for the six months to March, compared with a year earlier. The multinational chain is closing an Inverness store this month. The company has put up signs inside the shop, reading: 'We're sorry this store is closing soon but you can still shop at Holland and Barrett has not officially confirmed the closure. The frozen supermarket giant will shut a store in College Square, Margate, on June 21. Iceland has not provided a reason for the closure, however, the retailer confirmed that staff affected by the closure will be offered jobs within the business. The department store is closing for good this month, following 120 years of sales. The final day of trading will be June 8. Until then, the retailer is running a huge clearance sale, with up to 50 per cent cuts on beds, furniture, homeware and clothes. Rising costs and declining high street shopping in the UK has contributed to the retailer's demise. The Windsor flagship shop will stay open, as well as its online business. Five employees will be impacted by the closure, Daniel of Ealing said. The discount retail chain is closing a store on Margate High Street on June 8. A spokesperson for The Works said: 'As part of ongoing plans to optimise our store portfolio, we will be closing our Margate store. 'We have loved being part of the local community and apologise for any inconvenience caused by this closure. 'Customers can continue to shop with us at our nearby stores at Westwood Cross Shopping Centre and Ramsgate Garden Centre.' Five other The Works shops have closed this year due to underperformance.
Wales Online
28-05-2025
- Business
- Wales Online
Poundland shuts Welsh store and ‘200 more' could soon follow
Poundland shuts Welsh store and '200 more' could soon follow Poundland owner Pepco Group has given an update on the sale of the discount chain, as the firm revealed it has suffered a half-year loss amid a 'challenging' UK retail landscape Poundland is in the process of being sold (generic image) (Image: Getty Images ) A popular shop has closed in Wales and up to 200 more branches across the UK could follow. Poundland at Brackla shopping centre in Bridgend shut on May 24, and is one of several branches to have announced its closure this month. Meanwhile its parent company Pepco Group is in the process of selling the discount chain, which is estimated to be complete by September. In its recent financial briefing Pepco Group disclosed to its shareholders that it is "continues to actively explore separation options for Poundland business with an exit expected by end of FY25". This statement suggests that Poundland is on track to seal a deal by the conclusion of its ongoing financial year, ending in September. Industry rumours hint at several investment firms and private equity groups showing interest in acquiring the retailer. Reportedly, Gordon Brothers, the present owner of Laura Ashley, is leading the race to secure an agreement. The Telegraph last week suggested that the potential rescue sale might involve shuttering up to 200 Poundland shops. Recent disclosures show that Poundland's revenues slipped 6.5% to €985million (£830million) in the first half ending March, a downturn from the previous year, reports the Mirror. Article continues below The brand encountered difficulties across the board, resulting in 18 net store closures during this timeframe. Poundland is now projected to report earnings between 0 and €20million (£16.9million), adjusting down from original projections of €50million to €70million. Pepco Group, based in Poland, experienced a revenue increase of 4.3% totalling €3.34billion (£2.82billion) for the half-year term. Commenting on the situation, Pepco's chief executive Stephan Borchert said: "At Poundland, trading remains challenging, which is reflected in a profit outturn below expectations for H1 and a weaker outlook for the full year." "Barry Williams, who was reappointed as Poundland managing director in March 2025, and his team are actively driving a recovery plan to help turn around the business by refocusing on its traditional core strengths." In an announcement this March, Pepco Group confirmed its intentions to sell Poundland. The company had engaged Alix Partners earlier in the year to conduct a strategic review of the brand. A Pepco Group spokesperson informed The Mirror: "As stated at our capital markets day on March 6, we are actively exploring separation options, including a potential sale, for the Poundland business. We have started to work with advisers to support us with this process." The firm attributed the decision to a "challenging" UK retail environment and recent Budget announcements, which included increased National Insurance costs for employers and a rise in the minimum wage. With more 820 outlets and a workforce exceeding 16,000, Poundland operates extensively across the UK and Ireland, where it trades under the name Dealz. This news arrives as Poundland shuts down three more stores. The Brackla shopping centre branch in Wales closed May 24, and will reportedly be followed by the Chiswick High Road store on May 28. Additionally, the discount retailer closed its Copdock Mill Interchange location in Ipswich on May 20, the Mirror reported This came after the closure of its Clapham Poundland branch in London on May 2, followed by the shutting down of its store in Liverpool's Belle Valle shopping centre on May 6. Subsequently, its outlet in St George's Centre in Gateshead, Kent, ceased operations on May 8. Article continues below Get daily breaking news updates on your phone by joining our WhatsApp community here .
Daily Mirror
23-05-2025
- Business
- Daily Mirror
Poundland issues update on sale of the business 'as 200 stores could close'
The latest reports on Poundland suggest a number of investment firms and private equity groups are interested in buying the business The owner of Poundland has said it expects the sale of the discount chain to complete by September. In a financial update this week, parent company Pepco Group told investors that the company "continues to actively explore separation options for Poundland business with an exit expected by end of FY25". This indicates that Poundland expects the deal to be done by the end of its current financial year, which closes in September. Reports suggest a number of investment firms and private equity groups are interested in buying the business. Laura Ashley owner Gordon Brothers is supposedly the frontrunner to strike a deal. Last week, the Telegraph reported that up to 200 Poundland stores could face closure as part of a rescue sale. It was revealed this week that Poundland revenues dropped by 6.5% to €985million (£830million) for the six months to March, compared with a year earlier. The brand suffered 'challenges across all categories' and had 18 net store closures over the period. Poundland is now due to deliver earnings of between 0 and €20million (£16.9 million) compared with previous guidance of €50million and €70million. The wider Poland-based Pepco Group saw total revenues grow by 4.3% to €3.34billion (£2.82billion) for the half-year. Stephan Borchert, chief executive of Pepco, said: 'At Poundland, trading remains challenging, which is reflected in a profit outturn below expectations for H1 and a weaker outlook for the full year. 'Barry Williams, who was reappointed as Poundland managing director in March 2025, and his team are actively driving a recovery plan to help turn around the business by refocusing on its traditional core strengths.' Pepco Group first confirmed it was going to sell Poundland in an update this March. The firm had already hired Alix Partners to carry out a strategic review of the brand at the start of this year. A spokesperson from Pepco Group told The Mirror: 'As stated at our capital markets day on March 6, we are actively exploring separation options, including a potential sale, for the Poundland business. We have started to work with advisers to support us with this process.' The company blamed a 'challenging' UK retail landscape, along with changes announced in the Budget, including higher National Insurance contributions for employers and an increase in the minimum wage. Poundland has more than 820 stores and employs more than 16,000 people across the UK, as well as in Ireland, where it is known as Dealz. It comes as Poundland is set to close another two stores. Its branch in Brackla, Wales, will close on May 24, and its Chiswick High Road branch will shut for good on May 28. The discount chain shit its Copdock Mill Interchange site in Ipswich on May 20. This followed its Clapham Poundland branch in London closing on May 2, while its Liverpool Belle Valle shopping centre store closed on May 6, followed by its store in St George's Centre in Gateshead, Kent, which pulled down the shutters on May 8.
Fashion Network
22-05-2025
- Business
- Fashion Network
Pepco Group expects Poundland exit by September
European discount retailer Pepco Group is still exploring options for the separation of its struggling Poundland business in Britain, with an exit expected by September, the company said on Thursday. The Warsaw-listed group, which also owns the Pepco and Dealz brands, also warned that the 818-store Poundland might not make a profit in its 2024/25 financial year. Pepco Group said in March that it had attracted interest from potential buyers of the Poundland chain. The Sunday Times reported on May 17 that U.S.-based investor Gordon Brothers has emerged as the frontrunner among a clutch of potential suitors. Gordon Brothers did not respond to a request for comment. "We continue to undertake a process to separate Poundland from the group, as part of a wider strategy shift away from FMCG (fast-moving consumer goods)," said Pepco Group CEO Stephan Borchert. The group said that Poundland continued to face "highly challenging trading conditions" in its half-year to March 31, with revenue down 6.5% and underlying earnings before interest, tax, depreciation, and amortization (EBITDA) down 75% at 22 million euros ($24.9 million). The group made another cut to its full-year outlook for Poundland, forecasting underlying EBITDA between zero and 20 million euros, versus previous guidance of 50 million to 70 million euros. To reflect deterioration in Poundland's trading and its weaker outlook, the group booked a non-cash impairment charge of 234 million euros. It had already booked a charge of 775 million euros in December. The group as a whole reported a 5.5% fall in first-half underlying EBITDA to 460 million euros, despite revenue being up 4.3% to 3.34 billion euros. It maintained guidance for the Pepco brand to deliver "high single-digit" revenue and EBITDA growth in 2024/25 and plans 250 net new stores in the year. Shares in the group are up 12% so far this year. ($1 = 0.8821 euros)
Fashion Network
22-05-2025
- Business
- Fashion Network
Pepco Group expects Poundland exit by September
European discount retailer Pepco Group is still exploring options for the separation of its struggling Poundland business in Britain, with an exit expected by September, the company said on Thursday. The Warsaw-listed group, which also owns the Pepco and Dealz brands, also warned that the 818-store Poundland might not make a profit in its 2024/25 financial year. Pepco Group said in March that it had attracted interest from potential buyers of the Poundland chain. The Sunday Times reported on May 17 that U.S.-based investor Gordon Brothers has emerged as the frontrunner among a clutch of potential suitors. Gordon Brothers did not respond to a request for comment. "We continue to undertake a process to separate Poundland from the group, as part of a wider strategy shift away from FMCG (fast-moving consumer goods)," said Pepco Group CEO Stephan Borchert. The group said that Poundland continued to face "highly challenging trading conditions" in its half-year to March 31, with revenue down 6.5% and underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) down 75% at 22 million euros ($24.9 million). The group made another cut to its full-year outlook for Poundland, forecasting underlying EBITDA between zero and 20 million euros, versus previous guidance of 50 million to 70 million euros. To reflect deterioration in Poundland's trading and its weaker outlook, the group booked a non-cash impairment charge of 234 million euros. It had already booked a charge of 775 million euros in December. The group as a whole reported a 5.5% fall in first-half underlying EBITDA to 460 million euros, despite revenue being up 4.3% to 3.34 billion euros. It maintained guidance for the Pepco brand to deliver "high single-digit" revenue and EBITDA growth in 2024/25 and plans 250 net new stores in the year. Shares in the group are up 12% so far this year. ($1 = 0.8821 euros)
