Poundland to Shutter 68 Stores Amid Restructuring Post-Gordon Brothers Acquisition

Poundland is saved from insolvency. The British sundries chain has announced the approval of its restructuring plan by the UK High Court to avoid going into administration, which includes the closure of 68 stores.

The company was owned by Pepco Group until last June, when it was bought for £1 by Peach Bidco, a subsidiary of Gordon Brothers Company, just before announcing the closure of 68 outlets as part of its restructuring plans.

The retailer asked the High Court judge to approve the deal, arguing that the company would run out of cash by September 7th and approval of the plan would give the company a cash injection that would save it from falling into administration.

Poundland closed the 2024 financial year with a turnover 5.5% lower than in 2023

Poundland has a network of 800 stores spread across the UK and Ireland and operates with a workforce of 15,000 employees. This network could fade to 700 stores with the new restructuring plan, affecting more than 1,000 jobs.

In 2024, Pepco Group closed the year with an increase in sales to €1.93 billion, 3.4% more than in the same period of the previous year. The group did not disclose its net income for the period.

Poundland, on the other hand, closed the period down, with a turnover of €563 million, 5.5% less than a year ago. Poundland was also the only company in the group to end the quarter with a lower number of stores.