Poundland to close distribution centres
Following its acquisition by US investment firm Gordon Brothers for £1 from Poland-based Pepco Group, troubled discount retailer Poundland is closing its Bilston Distribution Centre in early 2026.
By Liza Helps, Property Editor, Logistics Matters
The COMPANY is also closing its frozen and digital distribution site at Darton, South Yorkshire alongside 68 shops. A spokeperson for Poundland said: “We outlined business recovery plans last week that included the possible closure of our Springvale Bilston Distribution Centre in early 2026, with delivery volumes currently handled at Bilston absorbed into our other centres in Wigan and Harlow. At the moment, this remains a proposal, but we’ve provided colleagues who work at Springvale with early notification.
“If the plans materialise, we would of course, work with our colleagues in a formal consultation process to explore any suitable alternative roles.”
It is thought the plans for the distribution centres would affect 250 employees with a further 750 retail jobs also on the line. Gordon Brothers is also seeking rent reductions across its retail portfolio as part of the restructuring plan, which will be subject to court approval.
The new Poundland will no longer offer frozen food, will reduce its chilled food offering and use its online platform to boost its branding.
Poundland invested £14 million in 2005 into the 307,000 ft2 national distribution centre in Bilston which was part of a design and build deal. The company could have moved from the Black Country to be closer to the M1 corridor but felt that keeping close ties to where it was originally founded was very important.
Poundland managing director 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 + 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.
“It’s sincerely regrettable that this plan includes the closure of stores and distribution centres, but it’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores.
“It goes without saying that if our plans are approved, we will do all we can to support colleagues who will be directly affected by the changes.”
Following the restructure it is thought Poundland will operate between 650 – 700 store supplied by two distribution centres.
