Poundland has narrowly avoided collapse after the High Court approved its comprehensive turnaround and restructuring plan, providing the discount retailer with a vital financial injection and a pathway toward long-term stability. The court-sanctioned plan arrives at a critical moment, just days before the business would have exhausted its cash reserves and been forced into administration.

The restructuring package includes a £60 million cash injection, in addition to the £30 million already invested following Poundland’s £1 acquisition by Gordon Brothers earlier this year, bringing the total new capital to £90 million. The company’s £276.5 million in loans, previously due by September 1, will now be extended by three years, and a £30 million overdraft facility has been secured. Negotiated reductions in rent for certain stores will also provide further breathing space.

To streamline operations, 68 underperforming stores will close along with at least two warehouses. These changes are expected to affect more than 1,000 roles across the business, including distribution and support teams.

With the court approval now in place, Poundland will shift its focus toward rebuilding and strengthening its offering. Management has pledged to revamp product ranges, sharpen pricing, and enhance efficiency in order to deliver greater value to customers.

Founded in 1990, Poundland has been a familiar presence on the UK high street for over three decades. In recent years, however, the company has faced mounting challenges, including intensifying competition and sustained losses. Earlier in 2025, Poundland was acquired by global advisory and investment firm Gordon Brothers for £1 after its previous owner, Pepco Group, sold the struggling retailer.

Today’s High Court approval provides Poundland with crucial funds and time to stabilise its operations, safeguard the majority of its store estate, and lay the groundwork for future growth.