(Reuters) -Britain's Poundland launched a restructuring plan on Tuesday, under which the struggling budget chain will close 68 stores and discontinue the sale of frozen food. (Reporting by Yamini
Poundland to Shut 68 Stores as Part of Major Restructuring Effort
(Reuters) -A restructuring plan proposed by struggling British discount retailer Poundland will see the closure of 68 stores and rent reductions across other locations, it said on Tuesday.
Last week, Warsaw-listed Pepco Group sold the Poundland business to Gordon Brothers for a nominal sum, with the buyer pledging to invest 80 million pounds ($108 million) to drive a recovery.
Poundland said the restructuring plan, which requires court approval, would, over time, result in a network of 650 to 700 stores.
The discounter currently operates from around 800 stores in the UK and Ireland, where it trades as Dealz. It employs about 16,000 people.
Other elements of the plan include Poundland withdrawing from the sale of frozen food, a reduced chilled food offer, converting Poundland.co.uk from a transactional website to a brand website, and adding a greater depth of womenswear items to stores.
Poundland also plans to close its frozen and digital distribution centre at Darton, northern England, later this year and its national distribution centre at Bilston, central England, in early 2026.
It said impacted creditors had been contacted to inform them of the plan, with the court timetable expected to conclude in late summer.
“It’s sincerely regrettable that this plan includes the closure of stores and distribution centres, but it’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores," Barry Williams, managing director of Poundland, said.
He added that if the plan was approved "we will do all we can to support colleagues who will be directly affected".
($1 = 0.7378 pounds)
(Reporting by James Davey in London and Yamini Kalia in Bengaluru; Editing by Tasim Zahid and Alison Williams)
