Poundland to close 68 stores in restructuring move

(Sharecast News) - British discount retailer Poundland, which was taken over last week by US investment firm Gordon Brothers for a nominal sum, has announced plans to shut 68 stores and two distribution centres.

The company, which currently operates 792 stores and employs 16,000 people across the country, said that a further 70 stores could be closed as it seeks rent reductions from landlords while a number of leases expire.

Poundland's chief executive Barry Williams said closures were "regrettable" but "necessary if we're to achieve our goal of securing the future of thousands of jobs and hundreds of stores".

"While Poundland remains a strong brand, serving 20m-plus shoppers each year, our performance for a significant period has fallen short of our high standards and action is needed to enable the business to return to growth," he said.

As part of its £1 takeover of Poundland last week, Gordon Brothers said it was providing up to £80m in financing for the struggling retailer to support management's proposed restructuring and turnaround plan. Poundland will use the facility for working capital to support its go-forward strategy, the investment firm said.

"We welcome Gordon Brothers as we focus on returning Poundland to its core heritage category strengths and place as an essential business to UK households," said Williams at the time of the takeover.