Poundland to close 11 more stores this week – is yours on the list?

Poundland is set to axe more stores within days following a wave of closures already this month.

The beleaguered discount chain has been shutting up shop on dozens of high streets across the UK.

So far in August, 38 stores have closed for good up and down the country.

Poundland’s new owner, investment firm Gordon Brothers, wants to cut the number of stores from around 800 to 650 within months in a bid to avoid the retailer collapsing into administration.

The retailer could run out of money by September 7 if its restructuring plan is not approved, the retailer’s lawyers told a High Court hearing today.

Poundland stores have already closed in Birmingham, Leicester, Tunbridge Wells, Bedford and Whitechapel in London to try to save the struggling brand.

Further closures are looming for 11 more stores by the end of this week.

Here is a map showing all the locations where Poundland shops have already shut, and the upcoming closures.

Alongside closures, Gordon Brothers wants to ditch frozen foods and the number of chilled items sold.

It will also stop online sales and focus instead on women’s clothes and seasonal ranges in-store in a bid to cut costs.

Poundland employs around 15,000 people in the UK and Ireland, but the changes have put around 1,000 jobs at risk.

Darren MacDonald, Poundland’s retail director, said: ‘It is, of course, sincerely regrettable that our recovery plans include any store closures, but sadly that’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores.

‘While our anticipated network of around 650-700 stores remains a sizeable one, we entirely understand how disappointing it will be for customers when one nearby, closes.

‘Nevertheless, we look forward to continuing to welcome them to a nearby Poundland.

‘It goes without saying that we will work closely with colleagues through a formal consultation process in stores scheduled to close, exploring any suitable alternative roles. That work is underway.’

Tom Smith KC, for Poundland Limited, said the company’s financial position had ‘significantly deteriorated during the last two years’ and that it had ‘performed poorly in a difficult retail and economic environment.’

A further cash injection of £60 million on top of the previous £30 million could save the retailer from collapse, he said.

The Darton, South Yorkshire, distribution centre is also set to close later this year, while the national distribution centre in Bilston, West Midlands, is expected to close early next year.

Poundland rose to its success by selling items for £1 at a market stall in the early 1990s, becoming a treasure trove for bargain hunters looking for deals.

Soon after being listed on the London Stock Exchange in 2014, the business was bought by the Polish firm Pepco Group for around £610 million.

Despite its upward trajectory after the coronavirus pandemic and new store openings, Poundland’s owners reported losses of about £572 million.

It was sold for £1 to Gordon Brothers this summer, leading to the significant reshaping of Poundland’s presence in British towns.

Across the UK, high street customers face an exodus of businesses, including banks.

Figures from last December show that more than 6,200 bank branches have shut since January 2015, meaning an average of 53 each month.

Santander, NatWest, Halifax and Lloyds have announced hundreds of closures this summer alone, with more in the pipeline in coming months.

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