Poundland's restructuring plan will affect around 1,000 jobs, it is understood. The discount retailer has announced plans to shut 68 stores and two of its UK warehouses following its takeover by investment firm Gordon Brothers.

Pepco Group after experiencing a downturn in trading in recent years. Poundland said it is seeking court approval for a restructuring plan to shut 68 shops and secure rent reductions on dozens more. It indicated it will shut dozens more of its UK shops in the coming years under the new ownership.

The retailer currently has around 800 stores but expects to have between 650 and 700 across the UK and Ireland following the restructuring.

However, the company stressed Irish shops have not been affected by the plan.

Managing director of Poundland, Barry Williams, 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."

He described the closures as "sincerely regrettable" but "necessary if we're to achieve our goal of securing the future of thousands of jobs and hundreds of stores".

Poundland 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.

The brand 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.

Court proceedings for the restructuring are expected to conclude in the late summer, according to bosses.

Mr Williams said it "goes without saying" that if the plans are approved, then the company will do "all we can to support colleagues who will be directly affected by the changes".

The discount chain reported revenues dropping by 6.5% to £830 million for the six months to March compared to the year before.

It had 18 net store closures over the period.