Poundland Avoids Administration After UK Court Approves £60m Restructuring

Poundland has avoided entering administration after a High Court judge approved a restructuring plan just days before the company was due to run out of money. The plan includes a significant injection of up to £60 million in new funding from Gordon Brothers, the private equity firm that acquired Poundland for £1 in June, bringing total new investment to around £90 million. The retailer, which operates approximately 800 stores and employs around 14,700 staff, has announced plans to close 68 stores, affecting about 1,000 jobs, and to shut distribution centers, resulting in further job losses. Poundland’s managing director emphasized the importance of the ruling in stabilizing the business and securing the future of many stores and jobs, while also acknowledging the impact on staff affected by closures and restructuring. The company has faced declining profitability in recent years amidst a challenging UK retail environment, with losses of £35.7 million in the last financial year. Moving forward, Poundland aims to revamp its product ranges, lower prices, and simplify its operations to return to growth.