"The chain is set to tap a £30m overdraft facility provided by its former owner, Pepco, after festive footfall and sales fell short of expectations. The move follows a tough few months for the retailer, which was rescued in the summer by distressed investment specialist Gordon Brothers in a court-approved restructuring deal. Gordon Brothers acquired Poundland for a nominal £1, a transaction that safeguarded the majority of its 16,000 jobs across 825 UK stores but also paved the way for widespread closures."
"Since taking control, Gordon Brothers has closed two warehouses and shut 68 of Poundland's worst-performing stores, putting more than 2,000 roles at risk, as it attempts to stabilise the business and return it to profitability. However, trading conditions deteriorated further over the Christmas period. Data from Sensormatic shows that UK high street footfall was down 13 per cent year-on-year on December 23, typically one of the busiest shopping days of the calendar."
Poundland plans to draw an immediate £30m overdraft from former owner Pepco after Christmas footfall and sales fell below expectations, creating a short-term liquidity squeeze. Gordon Brothers rescued Poundland in a summer restructuring, buying the chain for £1 and protecting most of its 16,000 jobs while enabling widespread closures. Since the takeover, two warehouses and 68 poor-performing stores have closed, putting over 2,000 roles at risk. Sensormatic data showed UK high street footfall fell 13% year-on-year on December 23, and the CBI reports sales expectations at their lowest since March 2021. Pepco initially resisted the funding draw but ultimately agreed.
Read at Business Matters
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