Poundland says it could run out of money next week
Summary
Poundland, a budget retailer, may run out of money by the end of the week if a restructuring plan is not approved. The company is asking a High Court judge to approve a plan that would provide it with more cash to avoid going into administration. Poundland has about 800 stores and employs 14,700 people.Key Facts
- Poundland has asked for a court-approved restructure to avoid running out of money by 7 September.
- The company announced plans to close 68 stores, affecting around 1,000 jobs.
- A cash injection of £60 million is part of the plan, in addition to £30 million already provided.
- Poundland was sold for £1 to a private equity firm subsidiary, Peach Bidco.
- The company reported a £35.7 million loss in the last financial year.
- Poundland will stop selling products online, leading to 350 warehouse job losses.
- The company's debt repayment of £276.5 million is due by 1 September but could be delayed by three years with the restructuring.
- Many Poundland stores are unprofitable due to high rent costs.
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