Discount retailer Poundland 'could close 200 stores' ahead of September sell-off
A national discount retailer with four stores in Shropshire could be sold off as early as September, its parent company says.
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Willenhall-based Poundland, which has two stores in Telford and also runs outlets in Newport and Shrewsbury, has been up for sale since March after parent company Pepco said it was looking to offload the brand.
Around 200 loss-making Poundland stores have reportedly been identified for closure as part of a possible rescue deal, which the group says it hopes to have completed by September in time for its end of year results.
A spokesperson for Poundland said no announcement had been made regarding store closures, and described the reports as "speculative".
In a trading update by Pepco last week, the group confirmed the brand had suffered "continued deterioration in trading" during the first half of the financial year, amid a weaker outlook for profitability.
Poundland revenues dropped by 6.5% to 985 million euros (£830 million) for the six months to March, compared with a year earlier.
The retailer currently operates 825 stores in the UK and employs around 16,000 people.
Stephan Borchert, chief executive of Pepco, said: “At Poundland, trading remains challenging, which is reflected in a profit outturn below expectations for H1 and a weaker outlook for the full year.
“Barry Williams, who was reappointed as Poundland managing director in March 2025, and his team are actively driving a recovery plan to help turn around the business by refocusing on its traditional core strengths.”
At it's Capital Markets Day investor event in March, Mr Borchert confirmed the group was exploring "actively exploring separation options" for Poundland - previously described as one of the Midlands biggest business success stories.
The company said its efforts to integrate Poundland into it's wider Pepco brand had failed, adding that it had become clear over the last 12 months that the plan had not delivered for either customers or shareholders.
Earlier this year the Willenhall-based brand reported poor festive trading, a period which saw sales plummet by 9.3% for the three months to December 31, with like-for-like sales down 7.3%, with weaker clothing and general merchandise sales blamed for the dip.
In January, the company said it was taking “immediate measures” to turn around the performance of the UK discount chain after a sharp drop in sales - including an increase in the number of products it sells for £1 or less as part of efforts to get the chain “back on track”.
