A POPULAR affordable retailer could be facing mass store closures.
In a bid to ensure the company’s future, a major restructuring plan is reportedly in the works.
Poundland could be set to close up to 200 stores as part of a restructure[/caption]
The consequences of this plan could include mass store closures and steep rent cuts for discount retailer Poundland.
Since being put up for auction in March of this year, the bidding war has been whittled down to investors Hilco and Gordon Brothers.
A decision on which investor will take over is set to be announced in the coming days.
Pepco has previously said it expects the sale of Poundland to be completed by September.
New investors will take on the restructuring plan being led by managing director Barry Williams.
Barry previously left the company two years ago but was brought back to Poundland’s board of directors earlier this year amid growing financial concerns.
It is expected to cost £70m to £100 million to stabilise the company as it struggles with declining sales.
The Telegraph reported that the company has already identified hundreds of stores for rent reductions and possible closures ahead of a possible sale.
Between 150 and 200 stores of the company’s 800 stores are thought to have been earmarked for immediate closure.
There is also speculation that the retailer will impose rent reductions on landlords between 10 and 50 per cent.
At other locations, they will pull out of agreements entirely, dependent on a judge’s approval as part of the court-sanctioned restructuring scheme.
It is uncertain what will happen to the retailer’s 16,000 staff.
Owners of Poundland, Pepco, cited “highly challenging trading conditions” as the reason behind its sales dropping 6.5% to £830.8 million in the six months to March 31.
A Pepco Group spokesperson said: “The focus of the Group and advisers is currently on a potential sale of Poundland. This is an ongoing process, and no final decisions have been taken.”
It comes as the chain is set to close two branches later this month.
Poundland’s Bristol branch is set to close on June 20, while its Flint store will shut up shop on June 21.
An additional eight stores have closed since the start of May, while a further 12 have shut since March 2024.
Another five are earmarked for closure from June 11.
This has affected branches in major cities like Liverpool and Ipswich, leaving retailers disappointed.
This is the full list of stores that have closed, or are set to close in the coming months:
- 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 – closing June 11
- Union Gate, Bristol – closing June 20
- Flint – closing June 21
- Cowes, Isle of Wight – closing July (exact date tbc)
- Newquay, August 1
The bargain retailer could be sold in the coming days[/caption]
