Poundland saved from administration as judge approves restructuring

BUSINESS WILL BE MORE ‘STREAMLINED’ RESULTING IN JOB LOSSES ACROSS THE ENTIRE COUNTRY

- By CALLUM PARKE

POUNDLAND has avoided entering administration after a restructuring plan was approved by a judge at the High Court, days before the company was due to run out of money.

Barristers for the retailer had told a hearing earlier on Tuesday that it would be placed into administration by Friday and was set to run out of money by September 7 if the plan was not approved.

The scheme will see up to £60 million of new funding injected to keep the retailer afloat, among other terms.

Poundland has stores at London Road, Derby; Kingsway in Derby; Waterside Retail Park Ilkeston, Waterside Retial Park, Ashbourne; Bridge street, Clay Cross; and Ravenside Retail Park, Chesterfield, as well as Burton, where the chain was founded.

In approving the restructure, Sir Alastair Norris said: “I am going to sanction the plan. I will give my reasons later”

Poundland was founded in Burton, in 1990, had approximately 14,700 staff members and operated around 800 stores when it was sold by Pepco Group to Peach Bidco, a subsidiary of private equity firm Gordon Brothers, for £1 in June.

The company then announced plans to shut 68 stores, which would affect around 1,000 staff.