The chain, which was itself sold for a pound to a US investment firm called Gordon Brothers last week, said there was “much work to do” to get the company back on track.
Barry Williams, the managing director, said: “While Poundland remains a strong brand, serving 20 million-plus shoppers each year, our performance for a significant period has fallen short of our high standards and action is needed to enable the business to return to growth.”
The firm will close 68 stores initially, as well as distribution centres in Darton, South Yorkshire, and in the West Midlands. It is also asking landlords in other areas to reduce rent, and if they do not, there may well be additional closures.
Changes ahead
Poundland has been owned by a Polish firm called Pepco since 2016, but had been struggling with sales. Revenue fell 6.5% to £830m in the six months to March compared to the previous year.
The new owner, Gordon Brothers, is a global business that previously owned Laura Ashley.
Why Life Insurance Still Matters – Even During a Cost-of-Living Crisis
Sponsored by Post Office
Poundland has said it will take other actions, as well as closing stores, to refocus the brand. It said its website, poundland.co.uk, would stop taking online orders and instead switch to browsing and branding, or advertising promotions. It will also stop selling frozen food and focus on popular meal deals instead.
The chain also said it would offer a “greater depth of womenswear in its clothing offer, the return of key seasonal general merchandise ranges and the restoration of product categories customers have missed”.
Over 1,300 jobs are understood to be at risk because of the closures.
