Future of bargain chain with 800 stores uncertain as it explores restructuring plan that could put shops at risk
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ONE of the UK's biggest bargain chains is facing uncertainty as it explores options that could put some of its 800 stores at risk. Poundland's owner has reportedly drafted in advisors after its latest trading update showed a sales slump. Pepco - the Polish parent company - is said to be looking at "radical options" to address the issues at the chain, according to Sky News.
![[People sitting outside a Poundland store.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/2024-new-leader-reform-uk-906913003.jpg?strip=all&w=960)
Bosses have hired consultants from AlixPartners as it considers possible avenues, including a formal restructuring process that could prompt "significant store closures", or even an attempt to sell the business. Another option reportedly being considered is a company voluntary agreement (CVA).
A CVA allows firms to look at ways to save the business, such as reducing rent rates with landlords or closing stores. It's important to note that no decisions have been made and the main aim is to improve Poundland's cash performance and revive the chain's customer proposition.
Stephan Borchert, chief executive officer of Pepco Group, is expected to set out formal plans for the future of the chain on March 6. The Sun has contacted Pepco and AlixPartners for comment. It comes as Pepco announced its trading results for the three months leading to December 31, with revenue sliding by 9.3% at Poundland.
Bosses blamed a slowdown in clothing sales for the dip and said it would work to get the affordable home and food retailer "back on track". Mr Borchert said: "The group delivered a mixed performance in its first quarter. "Poundland saw like-for-likes fall, largely driven by continued underperformance in clothing and general merchandise following the transition to Pepco-source product.".
