The budget retailer is entering its critical phase to find a buyer and the business’ parent company Pepco Group is expected to confirm the closures this week as it announces its half-year results, according to reports in The Sunday Telegraph.
It is believed the prospective buyers will acquire the business for just £1, matching the store’s former price commitment until it tweaked its price range.
Poundland has been on the market for buyers since March, with almost 200 stores running at a loss.
The closures would affect around a quarter of the retailer’s 825 stores, which employ around 16,000 staff.
Reasons for the decision range from rising costs and competition from other supermarkets lowering their own prices to the investment in its clothing range, which hasn’t reaped the financial rewards.
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The rumoured new buyers include the owner of Bensons for Beds, Alteri, and Hilco Capital, the owner of Lakeland.
Once the buyer is in place, the shops could have a different look, with the brand expected to have a rebrand following a much-needed cash injection.
However, the investment will not save the thousands of jobs that are under threat.
‘Moving away from fast-moving consumer goods’
A spokesperson for Pepco Group said: “As announced at the capital markets day on March 6, Pepco Group is moving away from fast-moving consumer goods to create a simpler business focused on higher-margin clothing and general merchandise and is actively exploring separation options for Poundland, including a potential sale, from the group.
“With Barry Williams’ reappointment as managing director, Poundland is executing a turnaround programme to get the business back on track, focusing on its core heritage strengths and a simpler pricing proposition and customer offer.”
