Budget chain Poundland has said it will be closing 68 stores as part of a turnaround plan to revive its fortunes.

A distribution centre at Darton, South Yorkshire and its national distribution centre at Bilton in the West Midlands have also been earmarked for closure in early 2026.

In addition, Poundland is seeking rent reductions from landlords which, together with lease expiries, could result in an additional 70 or so store closures in the future.

Poundland was sold for a pound last week to the US investment firm, Gordon Brothers, after struggling with “challenging trading conditions”.

Poundland currently has 792 stores and employs around 16,000 people.

The restructuring plan still requires approval by a court.

“It’s no secret that we have much work to do to get Poundland back on track,” said Barry Williams, Poundland managing director.

While it was “regrettable” the turnaround plan included closures, he said this was “necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores”.

“While Poundland remains a strong brand, serving 20m-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.”