Discount chain Poundland has been sold for just £1 to investment firm Gordon Brothers, the former owner of Laura Ashley, and has revealed plans to close stores
Poundland is shutting two stores this summer ahead of the planned closure of another 68 branches. The discount chain has been sold for just £1 to investment firm Gordon Brothers, the former owner of Laura Ashley.
It was later revealed that Poundland wants to close 68 stores as part of a major restructure, plus it will look to reduce its rent at a number of other locations.
The restructuring plan will go through the High Court for approval. But before this announcement, Poundland had already shut 16 stores recently, with a further two planned for this summer.
Its store in Cowes, Isle of Wight, will shut permanently on July 30, followed by its branch in Newquay, which will close on August 1. Poundland, which is owned by Pepco Group, has around 800 stores in the UK and employs roughly 16,000 employees.
As part of the restructuring plan, Pepco will retain a minority stake in Poundland. Gordon Brothers is providing up to £80million of financing to help fund the turnaround plan.
Stephan Borchert, Pepco Group chief executive, said: “This transaction will strongly support our accelerated value creation programme by simplifying the group and focusing on our successful Pepco business.
“Poundland remains a key player in UK discount retail, with millions of customers annually and a well-loved brand and proposition.
“We want to sincerely thank all the Poundland team for their ongoing commitment and contribution to the group and wish Barry Williams and his team all the best for the future.”
Mr Williams, chief executive of Poundland, said: “We welcome Gordon Brothers as we focus on returning Poundland to its core heritage category strengths and place as an essential business to UK households.
“We look forward to working with our supplier base to ensure we continue providing exceptional value to budget-conscious consumers in the UK.”
Mark Newton-Jones, head of Europe, the Middle East and Africa at Gordon Brothers, said. “We believe Poundland is an essential retailer serving UK consumers and plays an important role on the high street.”
Which Poundland stores are closing?
- Connswater Shopping Centre, Belfast – closed March 2024
- Macclesfield – closed August 2024
- Maidenhead – closed October 2024
- Sutton Coldfield – closed October 2024
- Clapham Junction Station, London – closed May 2
- Belle Vale Shopping Centre, Liverpool – closed May 6
- St George’s Centre, Gravesend – closed May 8
- Southwark Park Road – closed May 14
- Copdock Mill Interchange, Ipswich – closed May 20
- Brackla, Wales – closed May 24
- Chiswick High Road – closed May 28
- Filton Abbeywood – closed May 31
- Surrey Quays – closed June 11
- Barrow Dalton Road – closed June 12
- Union Gate, Bristol – closing June 20
- Flint – closing June 21
- Cowes, Isle of Wight – closing July 30
- Newquay – closing August 1