Poundland could close two of its Hull stores following its acquisition, the company has confirmed.
Yesterday, Poundland announced it had been bought by Gordon Brothers and revealed a restructuring plan, including the closure of 68 stores across the country.
A spokesperson for Poundland said: “We outlined business recovery plans last week that included the possible closure of our Holderness Road Retail Park and St Andrews Retail Park stores later this year.
“At the moment, this is only a proposal, but we’ve provided colleagues who work there with early notification.
“If the plans materialise, we would of course, work with our colleagues in a formal consultation process to explore any suitable alternative roles.”
If approved, Poundland’s restructuring plan, alongside the broader recovery plan, is expected to result in:
- The closure of 68 stores and rent reductions across a number of other locations to result in a network of around 650-700 stores
- Poundland’s withdrawal from the sale of frozen food
- Reducing its chilled food offer to its £3 meal deal and other essentials such as milk
- The closure of Poundland’s frozen and digital distribution centre at Darton, South Yorkshire, later this year and its national distribution centre at Springvale in Bilston, West Midlands in early 2026
- Delivery volumes from a streamlined Poundland will be absorbed into its existing distribution centres in Wigan and Harlow
- The simplification of Poundland’s digital presence, converting Poundland.co.uk from a transactional website to a brand website, and the retirement of its Perks app
- The return of ranges lost during the transition to Pepco-sourced products such as a greater depth of womenswear
Barry Williams, managing director of Poundland, said: “It’s no secret that we have much work to do to get Poundland back on track. 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.
“It’s sincerely regrettable that this plan includes the closure of stores and distribution centres, but it’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores.
“It goes without saying that if our plans are approved, we will do all we can to support colleagues who will be directly affected by the changes.”
Impacted creditors have been contacted to inform them of the plan and the court timetable is expected to conclude in late summer. The court-sanctioned process applies to creditors in the UK. It does not cover Poundland’s operations in the Republic of Ireland and Isle of Man, where it trades as Dealz nor trade suppliers in either the UK or Republic of Ireland.