Retailer ‘to close up to 80 stores’
POUNDLAND is looking to reduce its store numbers by nearly 10% as its new owners seek to regain the initiative after a difficult few months.
It is considering closing up to 80 of its 900 stores, the Telegraph has reported. Many of those under threat because of duplication following Poundland’s £55m acquisition of the 251-strong 99p Stores chain last year.
Stores at Queens Square Shopping Centre in West Bromwich and Hertford Street, Coventry, are among the shops the retailer is looking to offload.
A Poundland spokesperson said the retailer “continues to look at optimising its estate in the wake of its acquisition of the 99p Stores chain”.
When the deal was first proposed, the Competition and Markets Authority investigated the merger and reports suggested that up to 80 stores might have to be sold. Instead the CMA approved the deal without requiring any stores to be given up, but it now appears that Poundland is looking to take action voluntarily.
The retailer has had a difficult few months. In June it announced an 84% drop in pre-tax profits and at the same time South African retailer Steinhoff launched a hostile bid for the group.
Weeks of uncertainty followed but a higher bid resulted in a £610m deal to take the Willenhall-based retailer private in September.
Long-standing chief executive Jim McCarthy retired in July, but his replacement Kevin O’Byrne – who was appointed before Steinhoff’s interest was known – resigned in November to join Sainsbury’s. Former Asda chief executive Andy Bond has since been named as Poundland’s third boss in six months.
