Poundland has narrowly avoided administration after the High Court approved a major restructuring plan, but the discount chain has confirmed several stores across the country – as well as its online store and customer loyalty app – will be shut down as part of the shake-up.
The rescue package will inject up to £60m into the retailer, alongside a new £30m overdraft facility and extended loan repayment deadlines.
It comes just days before the business was set to run out of cash and was set to be placed into administration, and also follows the closure of dozens of its UK stores in recent months.
The Burton-on-Trent-founded company employs around 14,700 people across 800 stores and, while the ruling secures the majority of jobs and outlets, the company is pressing ahead with plans to close 68 shops, two distribution sites and end online sales through Poundland.co.uk from September 16th.
Its Poundland Perks loyalty app will also be retired on the same date, with vouchers remaining valid until January 2026.
A statement on the retailer’s website told customers: “From the 16th September, our website will be for browsing only and Poundland Perks will be closing – but you’ll still be able to use your vouchers… very soon there’ll be even more ranges at £1 and new items to choose from each week, but unfortunately, we will no longer be providing an online delivery service.”
Just this month, the retailer has closed 37 stores and another 11 are set to close on Sunday. Further store closures are set for September 14th.
Its frozen and digital distribution site in South Yorkshire will also fall victim to the restructuring later this year and another West Midlands warehouse will close early in 2026 in a move that could affect another 350 jobs.
Barry Williams, Poundland managing director, said the court ruling was “vitally important for Poundland, allowing us to stabilise the business, securing the future of hundreds of stores and thousands of jobs”.
“Despite the opportunity this ruling provides, I’m extremely mindful of its consequences for our colleagues, especially those leaving us as we streamline our store estate, distribution network and support teams,” he added.
“Nevertheless, our wider attention must now turn to getting Poundland back to growth.
“In the coming weeks, we will focus on getting us back on track, revamping ranges, lowering prices and creating the simpler and more focused Poundland we know our customers are eager for us to deliver.”
Observers say the decision to pull back from online trading highlights the financial pressures the chain has faced.
Frank Bouette, partner at city law firm DMH Stallard and restructuring and insolvency specialist, said: “The convenience of competitive online retailers doesn’t allow room for manoeuvre or strategy errors.
“Add in rising costs, declining sales, a change in ownership and operational challenges, plus resulting financial impairments, and it’s a perfect storm.
“A hard and focused restructure is required if the brand is to survive.”
Falconedge becomes latest Bitcoin strategy adopter before IPO