Poundland has announced a major restructuring plan that could see the closure of 68 UK stores and two distribution centres, putting over 1,300 jobs at risk. This follows its sale for a nominal £1 by Pepco Group to investment firm Gordon Brothers.
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Approximately 1,000 store employees and 350 warehouse staff are expected to be affected. The retailer will shut its Darton frozen food site in South Yorkshire and the Springvale warehouse in the West Midlands. Operations will be consolidated into existing centres in Wigan and Harlow.
The plan includes withdrawing frozen food from stores, scaling back chilled offerings to focus on essentials like milk and a £3 meal deal, and converting Poundland.co.uk into a brand website. The company will also retire its Perks app and increase womenswear in its clothing range.
Managing director Barry Williams said the brand had "fallen short of our high standards" and the changes were "necessary" to protect the business and jobs. Pepco will retain a minority stake, and Gordon Brothers is providing up to £80 million in funding to support the turnaround.
Store closures and other actions remain subject to creditor approval, with final decisions expected by late summer.
Source: www.dailymail.co.uk