Poundland has closed 149 stores and cut 2,200 jobs as part of a rescue plan following challenging trading conditions and unpopular clothing ranges that pushed the discounter into a £51m pre-tax loss in 2024. The company, bought for £1 from Pepco Group by US restructuring specialist Gordon Brothers in June 2025, said it has refocused on £1 items, with 60% of its stock now at that price.
The retailer is relaunching its Pep & Co clothing brand after a switch to ranges supplied by its former parent group hit sales. Adult clothing will be in stores by the end of January, with children’s and baby wear arriving in February. Poundland reported underlying profits more than doubled to £17.3m in the three months to 28 December compared with the same period a year earlier, though sales at established stores fell 2.9%.
The closures are part of a restructure first announced in June 2025, which included shutting at least 68 stores and up to 80 more, cutting rents, ending online sales, ditching the Perks loyalty app, and no longer selling frozen and most chilled foods. Its frozen and digital distribution centre in Darton, South Yorkshire, and national distribution centre in Springvale, Bilston, have closed, while centres in Wigan and Harlow continue to operate.
Managing director Barry Williams said the significant store closures were now finished, adding: “We have clear indications from the work we’ve already done, that we’re on the right track.” He noted that customers wanted a simpler offer that “keeps its promise of amazing value”. Gordon Brothers, a former owner of Laura Ashley, said it would invest up to £80m in Poundland to help turn the business around.
