Poundland stores 'at risk of closure' as popular budget chain set to be sold

THE OWNER OF THE RETAILER CONFIRMED THAT IT IS 'ACTIVELY EXPLORING SEPARATION OPTIONS' FOR THE POUNDLAND BUSINESSES 15:23, 12 Mar 2025 Poundland is set to be sold as it struggles

to battle an "increasingly challenging" UK retail landscape with some stores at risk of closure, it has been reported. There are fears that a number of Poundland's 825 sites

could end up closing their doors after the budget retail giant hired advisory firm Teneo to oversee a sale of the business. It comes after parent company Pepco Group confirmed last week that

it was exploring "all strategic options" for Poundland, including a potential sale. A spokesman for Pepco Group confirmed to The Mirror: "As stated at our capital markets day

on March 6, we are actively exploring separation options, including a potential sale, for the Poundland business. We have started to work with advisers to support us with this

process." In a statement issued last week confirming its intention to explore a sale, Pepco said: "Poundland is a strong brand that serves millions of customers every week and had

around two billion euros (£1.67 billion) in annual turnover in financial year 2024, but it is also operating in an increasingly challenging UK retail landscape that is only intensifying.

"From April 2025, the UK Government's additional tax changes announced in the Budget will also add further pressure to Poundland's cost base. Therefore the board is actively

evaluating all strategic options to separate Poundland from group during financial year 2025, including a potential sale." KEEP UP TO DATE WITH ALL THE LATEST BREAKING NEWS AND TOP

STORIES FROM THE NORTH EAST WITH OUR FREE NEWSLETTER Established in 1990 with its inaugural store in Burton Upon Trent, Staffordshire, Poundland now operates outlets across the UK and the

Republic of Ireland. With approximately 18,000 employees, the chain serves up to seven million customers weekly. In December, it was reported that Poundland's future was in doubt, with

Pepco Group's new CEO announcing that they were open to "every strategic option" for the faltering retailer. It followed Pepco's decision to devalue Poundland by £642

million in their accounting records, an adjustment stemming from challenging trading conditions and increasing expenses in the wake of changes announced in the Budget. Article continues

below Last spring, Poundland confirmed that it would be closing nine former Wilko stores, including the Viking Centre branch in Jarrow, just months after opening. The chain bought 71 Wilko

stores when the chain went into administration in 2023, with a spokesperson saying that the closures were part of a "constant review" of its estate. The news is the latest blow to

the UK high street, with other big name chains having announced closures in recent months. In February, is was reported that fashion retailer Select is planning to close 35 stores, including

North East branches in South Shields and Ashington. And earlier in the month, Homebase confirmed that it will be closing 33 more of its sites, with several North East stores on the list.

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