Poundland to pause rent payments at hundreds of stores

Poundland will pause rent payments on hundreds of its stores if its restructuring plan is approved by creditors.

The struggling discount chain, which was acquired last week by US investor Gordon Brothers, is proposing to switch to paying zero rent on 250 of what it classes as Category C sites across the country, Sky News reported.

The retailer will have the right to terminate leases with 30 days’ notice at 70 of its loss-making shops – classed as Category 2 – and 60 days’ notice at roughly 180 more locations after the plan is approved.

The discount chain is also looking to reduce its rent payments across hundreds of its stores by between 15% and 75%.

According to a letter sent to creditors, Poundland landlords could activate the break clauses in their contracts at the earliest opportunity if they can secure alternative retail tenants.

The proposals raise the question of how many shops will close and jobs impacted under the retailer’s new owners.

It is understood that a convening hearing has been scheduled for next month and a sanction hearing, where creditors will vote on the plan, is scheduled to occur on or around 26 August.

Poundland’s turnaround plan also includes the possible closure of its Springvale Bilston Distribution Centre in early 2026. The move places 250 jobs at risk, Express & Star reported.

Details of Poundland’s restructuring plan come after the chain was snapped up Gordon Brothers last week for just a £1. The firm said it will plough £80m into the business to help fund its turnaround plan.

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