Poundland avoids adminstration as HUGE restructure approved – but 68 stores and 1,350 jobs still axed

POUNDLAND has been saved from collapse after the High Court approved a restructuring plan days before the company was due to run out of money.

Barristers warned this morning that the chain needed approval to shut stores, cut rents, and downsize its workforce to avoid running out of cash by September 7.

If the plan is rejected and the chain collapses, administrators will take control of the company to decide if it can be saved, sold, or shut down entirely[/caption]

Poundland, which employs 14,700 staff and runs 800 stores, has struggled financially in recent years.

Its new owners, Gordon Brothers, who bought the chain for £1 in June, laid out plans to invest £90million to rescue the business.

Their rescue plan, approved by the High Court, involves tough decisions, including the closure of 68 stores, cutting 1,000 jobs, and shutting two warehouses, which will affect 350 workers.

Online sales will also stop, and rents will be reduced on unprofitable stores.

In written submissions for the hearing in London this morning, Tom Smith KC, for Poundland, said that the retailer’s financial position had “significantly deteriorated during the last two years” and that it had “performed poorly in a difficult retail and economic environment”.

He said: “The latest liquidity forecast shows that the group will run out of cash in the week ending September 7 2025.”

The barrister warned that if the restructure was not approved, the company’s directors would likely place it into administration by Friday.

In court, he said a “very significant amount of new money” would be injected into the company through the plan.

He said: “The plan will release a further £60million of funding, and that is in addition to the £30million that has already gone in following the purchase that took place on June 12.

“So, in effect, if you add everything up, Gordon Brothers is putting in £90 million.”

The retailer has already launched closing-down sales with discounts of up to 75% as it continues to shut dozens locations by mid-October.

This month, 48 stores are set to close, with 37 already shut and another 11 closing on August 31.

The closures were meant to save money, but Poundland still had to pay for the leases.

With the restructuring approved, it can now give up these leases to reduce costs.

The chain, which currently operates 800 stores, aims to reduce its footprint to between 650 and 700 locations.

The restructuring also includes rent cuts at up to 180 stores and the closure of its frozen food and online shopping operations.

The Darton frozen distribution centre will shut later this year, while the Bilston national distribution centre will close in early 2026.

Poundland will now consult staff on potential job cuts and will end its online shopping service and loyalty scheme, Poundland Perks, by mid-September.

Loyalty scheme customers signed up to the Poundland Perks app have until January 15 2026, to use their rewards vouchers.

Despite the downsizing, the retailer plans to expand its £1 product range and focus on womenswear and seasonal items if the restructure goes ahead.