Poundland to close another 12 stores and two depots as Gordon Brothers cuts UK estate

Poundland to close another 12 stores and two depots as Gordon Brothers cuts UK estate

Industry News
Poundland

Discount chain Poundland has confirmed a further 12 shop closures and plans to shut two distribution centres as new owner Gordon Brothers reshapes the business, winds down online and frozen ranges and launches clearance sales amid consultations that could put more than a thousand jobs at risk.

Poundland has confirmed a fresh tranche of shop closures as part of a sweeping restructuring that will significantly shrink its UK estate and scale back online and frozen-food operations. According to reporting in The Scotsman, the discount retailer has named a further 12 branches that will close in the coming weeks, bringing the number of publicly listed closures to 52 of 68 that have so far been revealed. Most of the newly named sites are due to shut at the end of August, with one scheduled to remain open until mid‑September. Retail trade reporting has characterised the moves as part of a wider programme to simplify the business and restore profitability.

The latest closures are concentrated across towns and city suburbs rather than targeting any single region. The Scotsman supplied the full list of affected branches and dates, showing clusters of shops closing on 24 and 31 August and a final site in Irvine earmarked for 14 September. Industry outlets including Retail Gazette reiterated those timings and said the company has launched a large online clearance, offering hundreds of reduced lines as the estate is pared back.

Logistics are a key element of the overhaul. Poundland will close its frozen and digital distribution centre in Darton, South Yorkshire, later this year and plans to shut its Springvale national depot in Bilston in early 2026, with remaining warehouses in Wigan and Harlow absorbing fulfilment. Both Sky News and ITV reported the depot closures as part of formal proposals to close two distribution sites alongside multiple shops, and they noted the intention to reallocate deliveries and warehouse capacity into the remaining hubs once the programme proceeds.

The changes extend beyond bricks-and-mortar: Poundland is winding down some online operations and cutting back frozen and chilled food ranges where they are stocked. Retail coverage has highlighted an accompanying online clearance sale - Retail Gazette reported bargains from as little as 10p across categories such as toiletries, children’s toys and seasonal goods - a move the retailer says is intended to reduce stock and simplify ranges during the transition.

The restructuring follows the retailer’s sale earlier this year. The Guardian reported that Poundland was sold to turnaround specialist Gordon Brothers for a nominal £1, with the buyer intending to invest as much as £80 million to attempt a recovery. Pepco Group, which previously owned Poundland, said the disposal would allow it to focus on higher‑margin operations elsewhere. Industry reporting has framed Gordon Brothers’ changes as aiming to concentrate the business on core ranges and lower‑cost logistics.

The human cost of the reset is material and uncertain. Sky News estimated that proposals could put roughly 1,350 jobs at risk, while ITV reported that around 350 roles could be affected by the warehouse closures alone. The chain itself employs many thousands — The Guardian reported a workforce of about 16,000 — and Poundland has said it is consulting affected staff and will seek to find alternative roles where possible. The company’s retail director, Darren MacDonald, acknowledged the impact on shoppers and staff and encouraged customers to use nearby stores.

Several aspects of the plan remain subject to approval and negotiation. Reports from Sky and ITV noted that some elements — including store closures and rent reductions at a number of sites — require court sanction or agreement with landlords, and that the intended long‑term estate could fall to between about 650 and 700 shops from roughly 800 today if the proposals are implemented. The company characterises the programme as necessary to stabilise the business; independent observers say such restructuring is a common, if painful, step in retail turnarounds.

For customers, the immediate visible effects are the closure notices on a swathe of stores and a heavy online clearance. For staff and landlords, the coming months will determine how many locations are ultimately lost and how logistics are reconfigured. Poundland and its new owner have laid out the broad contours of a plan to shrink and simplify the business; its success will depend on court outcomes, the pace of depot consolidation and whether the refocused proposition can regain profitability.