Poundland eyeing mass store closures amid ongoing turnaround plan

Poundland is said to be mulling the closure of between 150 and 200 stores amid an ongoing turnaround plan being carried out as its sales process continues.

According to the Telegraph, the budget retailer is also eyeing up to 500 sites for rent cuts, with a plan to impose rent reductions on landlords between 10 and 50 percent.

Other agreements may be exited via a court-sanctioned restructuring, the media outlet stated, and will thus need approval from a judge.

A spokesperson for the Poundland’s current parent company, Pepco Group, told FashionUnited: “The focus of the group and advisors is currently on a potential sale of Poundland.

“This is an ongoing process, and no final decisions have been taken.”

A buyer for Poundland, which was put up for sale in March, will likely take over its turnaround plan and is further expected to inject between 70 and 100 million pounds to help stabilise the company, the Telegraph suggested.

Pepco lowered Poundland’s full-year profit guidance in May, citing “highly challenging trading conditions” as the cause. The retailer is now expected to report an EBITDA of 0 to 20 million euros, down from the previously projected 50 to 70 million euros.