Poundland closing down: bargains retailer saved after court approves rescue - store closures near me news

• Poundland could run out of money by September 7 unless a rescue plan is approved
• The retailer has already announced 68 store closures, with more at risk if the plan fails
• Around 1,300 jobs are under threat, including staff at two warehouses due to shut
• New owners Gordon Brothers have pledged a £90m cash injection to stabilise the business
• Shoppers face reduced access to Poundland stores, with online sales also being scrapped

One of the nation’s favourite discount retailers has narrowly avoided administration after a judge at the High Court approved a last-ditch restructuring plan, just days before the discount retailer was set to run out of cash.

Barristers for Poundland told the court on Tuesday (August 26) that the company would have collapsed by Friday without the plan, and was forecast to run out of money by September 7.

The rescue package, sanctioned by Sir Alastair Norris, will see up to £60 million in fresh funding injected into the business, alongside a £30 million overdraft facility and revised loan repayment deadlines pushed back to 2028.

Rents on some of Poundland’s less profitable stores will also be reduced.

Founded in 1990 in Burton upon Trent, Staffordshire, Poundland now operates around 800 stores across the UK and employs roughly 14,700 staff.

But its financial troubles have come to a head following a difficult two years in the retail sector, with rising costs and challenging economic conditions contributing to a pre-tax loss of £35.7 million in the 2024 financial year.

Will Poundland stores close?

Despite the lifeline, the restructuring will not prevent widespread job losses and store closures. Poundland had already announced in June that 68 outlets would be shut, affecting about 1,000 jobs.

Three branches closed before July, and 37 stores have shut their doors this month, including sites in Newcastle, Leicester and Peterborough.

A further 11, including Blackburn, Kettering and Taunton, will close on Sunday (August 31), with Irvine in North Ayrshire following on September 14. Another 16 closures are planned but have yet to be confirmed.

Locations affected include both urban and suburban stores, meaning some shoppers may soon find their nearest Poundland much further away. The full list of confirmed Poundland closures is as follows:

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Stores closing on August 31:

• Blackburn
• Cookstown
• Erdington
• Kimberley
• Horsham
• Hull Holderness
• Kettering
• Omagh
• Shepherd’s Bush
• Southport
• Taunton

Stores closing on September 14:

• Irvine

In addition to store closures, the retailer will also close two warehouses – its frozen and digital distribution centre in Darton, South Yorkshire, and a site in Springvale, Bilston, West Midlands.

Around 350 employees will be impacted, with the closures linked to Poundland’s decision to stop online sales through its Poundland.co.uk website.

What does it mean for shoppers?

Barry Williams, Poundland’s managing director, welcomed the ruling, calling it “vitally important” for the company and its future.

“This decision allows us to stabilise the business, securing the future of hundreds of stores and thousands of jobs,” he said.

But he acknowledged the “direct impact” on colleagues losing their jobs as the retailer streamlines operations. “We re-confirm our commitment to do all we can to support them,” he added.

Looking ahead, Williams said Poundland will focus on “revamping ranges, lowering prices and creating the simpler and more focused Poundland we know our customers are eager for us to deliver.”

For shoppers, the news means that while many local stores will continue trading, dozens are still set to close in the coming weeks.

The retailer is betting that a leaner operation, with a sharper focus on value, will be enough to keep bargain hunters coming through its doors.

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