Poundland is set to close 49 stores across the UK in the coming weeks as part of a major restructuring under its new ownership. 10 outlets have already shut their doors today, with many more scheduled to follow by mid-September. The stores closing today include locations in Ammanford, Birmingham Fort, Cardiff Valegate, Cramlington, Leicester, Long Eaton, Port Glasgow, Seaham, Shrewsbury, and Tunbridge Wells.
This wave of closures follows the sale of Poundland by its former owner, the Pepco Group, to US investment company Gordon Brothers in June for a nominal fee of just £1. As part of the deal, Gordon Brothers committed to investing £80 million to help revitalize the struggling retailer, which has faced challenges from declining sales and rising expenses.
The current plan involves closing nearly 70 stores by the middle of October, which amounts to around 10% of Poundland’s 800-store portfolio.
15 more stores are set to close on August 17, followed by 12 on August 24, and another 11 on August 31. The final closure in this sequence will be taking place on September 14 at the Rivergate Shopping Centre in Irvine, North Ayrshire.
Darren MacDonald, retail director at Poundland, said about the closures: “While our anticipated network of around 650-700 stores remains sizeable, it is of course, sincerely regrettable that we’re closing a number of stores to allow us to get us back on track.
“We entirely understand how disappointing it will be for customers when a store nearby closes, but we look forward to continuing to welcome them to one of our other locations.
“Work is underway to with colleagues through a formal consultation process in stores scheduled to close, exploring any suitable alternative roles.”