Poundland recovery plan leaves 1,350 jobs hanging in the balance

The new owner of the discount retailer Poundland has revealed proposals to close 68 stores and two distribution centres under a shake-up that will also see frozen food and online sales halted.

Gordon Brothers, the investment firm which snapped up the struggling brand for a nominal sum last week, said its recovery plan "intended to deliver a financially sustainable operating model for the business after an extended period of under-performance". The plans are understood to be leaving 1,350 jobs at risk.

Money latest: £150 compensation for thousands of energy customers It currently employs 16,000 people across the business. Poundland said it was also seeking store rent reductions more widely under the plans.

Sky News reported on Monday that if creditors backed the restructuring, with a vote expected in late August, 250 of Poundland's sites would also see their rent bills reduced to zero. Poundland said its future focus would be on profitable stores, with its web-based operations becoming confined to browsing only.

As a result of the new priority, along with a shift away from most chilled and all frozen products, the company said it would no longer need its frozen and digital distribution centre at Darton in South Yorkshire. It was to shut later this year.

Poundland also planned to close its national distribution centre at Bilston in the West Midlands early in 2026. The retailer said it expects to end up with between 650 and 700 stores after the overhaul - assuming it achieves court approval.

It currently runs around 800 stores across the UK and Ireland but stressed Irish shops, which trade as Dealz, have not been affected. Poundland's struggles in recent years have included increased competition, poorly-received stock and rising costs.

Its managing director, Barry Williams, said: "It's no secret that we have much work to do to get Poundland back on track. "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.

"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. "It goes without saying that if our plans are approved, we will do all we can to support colleagues who will be directly affected by the changes.".