Blackburn Poundland to close on Sunday despite restructure.

Residents of Blackburn have only a few days left to take advantage of bargains after Poundland’s closure was confirmed.

Despite getting court clearance for its significant reorganisation plan, the discount retailer decided to close stores across the country.

In June, the company announced plans to permanently close 68 stores after being acquired for £1 by Pepco Group to Peach Bidco, a unit of private equity firm Gordon Brothers.

On Tuesday, the company told a judge that the plan would keep it from going bankrupt, while barristers told a hearing that if the program was not approved, it would run out of money by September 7.

However, the store at The Mall will close on Sunday, August 31, along with 11 other locations around the UK, including one in Southport.

When the announcement was made at the beginning of the month, Poundland’s retail director, Darren MacDonald, stated that the closure programme aimed to ensure the future of thousands of employment and hundreds of stores.

He stated, “When a nearby store closes, we understand how disappointing it is for customers, but we look forward to welcoming them to another Poundland store in the future.”

“Work is underway with colleagues through a formal consultation process in stores scheduled to close, exploring any suitable alternative roles.”

In written submissions for the hearing on Tuesday, August 26, Tom Smith KC of Poundland Limited stated that the company’s “profitability has sharply declined” in recent years.

He stated, “The group was performing well prior to and during the Covid-19 pandemic.” “However, the business has struggled in the previous two years in an increasingly competitive UK retail climate.

“In response to these obstacles, it expanded its offering, including adding chilled and frozen products and launching online sales.

“However, these changes increased operating costs, as did increases in the UK national living wage and employer national insurance contributions.”

Poundland will receive a £30 million overdraft facility as part of the restructuring strategy, with debt repayment dates pushed back to 2028.

Following the hearing, Poundland’s managing director, Barry Williams, stated that the ruling was “vitally important for Poundland, allowing us to stabilise the business, securing the future of hundreds of stores and thousands of jobs”.

He stated, “Despite the opportunity this verdict affords, I’m quite concerned about the ramifications for our workers, particularly those leaving us as we consolidate our store estate, distribution network, and support staff.

“We recognise the immediate impact our plans have had on them and reiterate our commitment to doing everything we can to help them.

“However, our primary focus must now be on returning Poundland to growth. “In the coming weeks, we will focus on getting us back on track, revamping ranges, lowering prices and creating the simpler and more focused Poundland we know our customers are eager for us to deliver.”

Poundland locations in Accrington, Burnley, and Colne remain open, as are additional stores in Preston and Chorley.

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