Poundland to Shut Dozens of Stores and Warehouses Following £1 Sale
One of the UK’s most recognisable discount retailers, Poundland, is set to close 68 of its branches and wind down operations at two key warehouses, as new owners enact sweeping changes after acquiring the brand for just £1. This news arrives at a turbulent time for the British high street, highlighting ongoing struggles faced by established retailers amid rapidly shifting consumer habits and economic headwinds.
The closures come in the wake of the chain’s purchase by American investment firm Gordon Brothers, following disappointing trading results that placed severe pressure on the business. Under the terms of the deal, more than 800 remaining Poundland shops, as well as around 16,000 staff, have moved under Gordon Brothers’ ownership, while former owner Pepco Group retains a minority stake.
As part of the restructuring plans, the retailer will close its frozen food and online distribution centre in Darton, South Yorkshire, later this year, alongside its national distribution hub in Bilston, West Midlands, which is scheduled for closure in early 2026. In addition, Poundland has announced it will discontinue its frozen food range and scale back chilled food offerings, while also ceasing all online sales—a strategic retreat likely aimed at stabilising operations and returning to its traditional roots.
Sources close to the transaction confirm that the sale of Poundland was concluded for a “nominal” sum, believed to be just £1, with new owner Gordon Brothers pledging up to £80 million in funding to kick-start the turnaround process. It is understood that full details of the planned store shake-up will be shared with creditors in the following days, as the company seeks approval through the High Court for its restructuring programme.
The announcement comes shortly after Poundland reported a 6.5% decline in revenues for the six months to March, falling to £830 million. The retailer acknowledged persistent difficulties across all its product sectors and had already shuttered 18 net stores during this period. The decline reflects a broader trend on Britain’s high streets, where competition from online shopping and changing buying habits have eroded the market share of traditional discounters.
As part of the recovery strategy, Poundland’s new owners are expected to push for up to 100 store closures and renegotiate rent terms with landlords, as cost-control measures become paramount. The company remains optimistic, with management emphasising a renewed focus on its best-performing product categories and commitment to being “an essential business to UK households” battling the cost-of-living crisis.
Stephan Borchert, chief executive of Pepco Group, commented that the sale would allow the group to concentrate on its successful Pepco brand while supporting a value-creation programme through cost-efficiency and simplification. He paid tribute to all Poundland employees and expressed confidence in Gordon Brothers’ ability to steer the brand through challenging times.
Barry Williams, chief executive of Poundland, welcomed the investment and reaffirmed the retailer’s mission to deliver value to budget-conscious shoppers. “We look forward to working with our supplier base to ensure we continue providing exceptional value to UK consumers,” Williams said, stressing the chain’s enduring value proposition.
Gordon Brothers, meanwhile, described Poundland as a crucial part of the British retail landscape. Mark Newton-Jones, head of the firm’s European division, stated: “We believe Poundland is an essential retailer serving UK consumers and plays an important role on the high street.”
The fate of Poundland, a fixture for many households, will be watched closely by analysts, customers and policymakers alike, as the industry looks for answers to the broader challenges facing UK retail and the future of affordable shopping.
While the transition is underway, thousands of jobs remain in the balance, with employees and communities bracing themselves for the forthcoming changes. As Poundland charts its new course, attention will now turn to how the brand reinvents itself for a demanding retail environment whilst staying true to its core promise of value for money.