Poundland stores closing: dramatic discount chain overhaul could see 200 stores close and jobs at risk - news

• Up to 200 Poundland stores are set to close under a sweeping rescue plan
• Hundreds more sites face rent cuts of up to 50% in a court-backed restructure
• The overhaul comes as Poundland’s owner Pepco seeks a sale of the chain
• Distressed investors Hilco and Gordon Brothers are reportedly in the running
• A new owner could inject £70m–£100m to stabilise the struggling retailer

Hundreds of stores could shut down as part of a dramatic turnaround plan designed to rescue a struggling discount chain and pave the way for a sale.

Between 150 and 200 Poundland stores are reportedly earmarked for immediate closure, with up to 500 more facing steep rent cuts of up to 50% as part of a court-backed restructuring scheme, according to The Telegraph.

The chain currently runs more than 800 shops across the UK and employs around 16,000 people.

The overhaul, spearheaded by managing director Barry Williams, comes as Poundland’s owner Pepco tries to offload the business following a steep drop in sales.

The retailer was put up for sale in March, and the auction has now narrowed to distressed investors Hilco and Gordon Brothers.

Any new owner would inherit a radical cost-cutting plan designed to stabilise the company, with reports suggesting a cash injection of between £70m and £100m is on the table.

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Last month, Pepco slashed its full-year profit forecast for Poundland after “highly challenging” trading conditions saw sales fall 6.5% to £830.8m in the six months to March 31.

Its projected underlying earnings (EBITDA) now sit between £0m and £16.8m — a sharp downgrade from earlier guidance of up to £59m.

A Pepco Group spokesperson said: “The focus of the group and advisers is currently on a potential sale of Poundland. This is an ongoing process and no final decisions have been taken.”

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