Poundland Store Closures: 68 Locations to Shut Down Under Major Restructuring Plan
Poundland has announced plans to close 68 stores as part of a large-scale restructuring strategy aimed at reviving the struggling budget retailer. The move comes shortly after the chain was sold to U.S. investment firm Gordon Brothers for just £1, following a period of “challenging trading conditions.”
As part of the turnaround plan, the company will also shut down its Darton distribution centre in South Yorkshire and its national distribution hub in Bilston, West Midlands, by early 2026.
In addition to the initial closures, Poundland is negotiating rent reductions with landlords. If unsuccessful, these talks—along with upcoming lease expirations—could lead to the closure of up to 70 more stores in the future.
Currently, Poundland operates 792 stores across the UK and employs approximately 16,000 people. The proposed restructuring still requires approval from a court.
“It’s no secret that we have much work to do to get Poundland back on track,” said Barry Williams, Poundland’s Managing Director. “While regrettable, these closures are necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores.”
Despite serving over 20 million shoppers annually, Williams admitted the brand’s performance has fallen below expectations and that bold action is required to ensure long-term stability and growth.
🔄 Operational Changes
As part of the reset, Poundland will exit frozen food sales and instead shift focus to £3 meal deals and essential grocery items like milk. Additionally, the company will disable online orders via its website, poundland.co.uk, transforming it into a platform for browsing and promotional content instead.
The brand also plans to enhance its womenswear selection, reintroduce key seasonal items, and bring back popular product categories that had been previously removed.
🔁 Ownership Update
Poundland’s former owner, Polish retail group Pepco, sold the business last week for a symbolic sum, citing ongoing financial strain and the recent National Insurance increases that have added further pressure on operating costs. Pepco had owned Poundland since 2016.
The new owners, Gordon Brothers, are known for acquiring and restructuring well-known but struggling retail brands, including the once-iconic Laura Ashley.
