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Poundland has announced a restructuring plan that puts over 1,300 jobs at risk, following its acquisition by investment firm Gordon Brothers. The discount retailer intends to close 68 stores and two warehouses in the UK.

The announcement comes after Pepco Group sold Poundland for £1 last week, citing a significant downturn in trading in recent years.

Poundland is now seeking court approval for its restructuring, which includes the closure of the 68 stores and aims to secure rent reductions on numerous others. It is estimated that approximately 1,000 shop workers will be affected by these changes.

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The discount chain, known for primarily selling products for £1, also indicated it will shut dozens more of its UK shops in the coming years under the new ownership.

The retailer said it expects to end up with between 650 and 700 stores across the UK and Ireland after the overhaul.

It currently runs around 800 stores but stressed Irish shops have not been affected by the restructuring plan.

Poundland said it also plans to close its frozen and digital distribution site at Darton, South Yorkshire, later this year and another warehouse at Springvale in Bilston, West Midlands, in early 2026.

Around 350 people will be affected by the warehouse closures.

It will also stop selling frozen food at stores where it’s currently offered and reduce its chilled food offer in the future.

The warehouse closures are also linked to Poundland’s plan to stop online sales through its Poundland.co.uk website.

Bosses said they expect the court proceedings for the restructuring to conclude in late summer.

Barry Williams, managing director of Poundland, said: “It’s no secret that we have much work to do to get Poundland back on track.

“While Poundland remains a strong brand, serving 20 million-plus shoppers each year, our performance for a significant period has fallen short of our high standards and action is needed to enable the business to return to growth.

“It’s sincerely regrettable that this plan includes the closure of stores and distribution centres, but it’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores.

“It goes without saying that if our plans are approved, we will do all we can to support colleagues who will be directly affected by the changes.”

Last month, Poundland reported revenues dropped by 6.5% to 985 million euros (£830 million) for the six months to March, compared with a year earlier.

The brand suffered “challenges across all categories” and had 18 net store closures over the period.