Poundland closings threaten over 1,000 jobs

Poundland is planning to close 68 shops and two warehouses in a turnaround strategy. Reports estimate that 1,000-2,000 jobs could be at risk.

The budget chain has approximately 16,000 employees in the UK and Ireland and nearly 800 stores. It was sold last week by Pepco for a nominal amount to US retail investment company Gordon Brothers.

The restructuring plan will see the closure of a digital and frozen distribution center near Barnsley, and a warehouse near Wolverhampton. The restructuring plan does not affect two other hubs of logistics in Wigan and Harlow.

Poundland has said that its Irish stores which trade under Dealz are not affected by the closures which require UK court approval.

Barry Williams, managing director of Poundland, said: “It is no secret that there is much work ahead to bring Poundland’s performance back on track.”

“While Poundland is a strong brand that serves 20 million shoppers or more each year, we have fallen behind our high standards for a considerable period of time and need to take action to allow the business to grow again.

It’s regrettable that the plan involves the closure of distribution centres and stores, but this is necessary to secure the futures of thousands of workers and hundreds of shops.

It goes without saying that, if our plans were approved, we would do everything we could to support the colleagues who would be directly affected by these changes.

Poundland announced that it would offer a “more streamline” food operation and stop selling frozen foods. Its website will no longer accept orders, but will only be available for browsing. It also cancels its “Perks”, a loyalty program.

In order to implement the full turnaround strategy, between 650-700 stores will be closed.

Bally Auluk is the national officer of the Usdaw. He said that Poundland had informed the union about their plans to seek permission from UK creditors and the court to close 68 stores. They claim there’s ‘no way to return to profitability.’ Also, they plan to streamline the distribution operation by closing Springvale and Darton and moving the work to the existing facilities in Wigan, and Harlow.

“We do not know at this time which stores will be closed, but we do know that the company may close up to 150 shops in the future.

“This is a devastating blow to our members at the Springvale and Darton Distribution Centres and a time of great concern for all those who work in retail.” This week, I will meet with the company to determine the scope of the consultation process, which is required by law, as well as the stores that are at risk. We are offering our members the advice, support and representation they need during this uncertain time.

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