Retail trade union Usdaw are representing members working for discount retailer Poundland, who are now seeking court permission to close 68 stores and their distribution centres in Springvale, near Wolverhampton in the West Midlands, and Darton, near Barnsley in South Yorkshire.
Parent company Pepco last week announced the sale of Poundland to Gordon Brothers, which included a restructuring plan that now must be agreed by a court and with UK creditors through a legal process that could run through to late summer this year. The company says that the full turnaround plan could lead to a reduction in the number of stores, from 800 to between 650 and 700.
Usdaw’s national officer, Bally Auluk, says: “Poundland has briefed Usdaw that they are now seeking permission from the court and UK creditors to close 68 stores, which they say have ‘no route to a return to profitability’ and streamline their distribution operations by closing the Springvale and Darton sites and transferring the work to existing facilities in Wigan and Harlow.
“We don’t at this stage know which stores are proposed for closure and we are aware that in the longer term the company could axe up to 150 stores. This is clearly devastating news for our members in Springvale and Darton distribution centres and a very worrying time for those working in stores.
“I am meeting the company this week to establish the process of meaningful consultation, as required by law, and establish which stores are under threat. In the meantime, we are providing our members with the support, advice and representation needed at this time of uncertainty.”
