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Poundland has been saved from collapse just days before the retailer was due to run out of money.
Its restructuring plan was approved by a High Court after barristers told a hearing that it would fall into administration by Friday and could run out of money by 7 September if the plan was not approved.
Responding to the High Court determination, Poundland’s managing director Barry Williams said: “Today’s decision is vitally important for Poundland, allowing us to stabilise the business, securing the future of hundreds of stores and thousands of jobs. We’d like to thank the court, and the engagement of our creditors, throughout this process.
“Despite the opportunity this ruling provides, I’m extremely mindful of its consequences for our colleagues – especially those leaving us as we streamline our store estate, distribution network and support teams.”
He added: “We acknowledge the direct impact our plans have had on them and re-confirm our commitment to do all we can to support them. Nevertheless, our wider attention must now turn to getting Poundland back to growth.
“In the coming weeks we will focus on getting us back on track – revamping ranges, lowering prices and creating the simpler and more focused Poundland we know our customers are eager for us to deliver.”
Earlier this month, Poundland confirmed the locations of a further 12 stores that were set to close under its restructuring plan, taking the total number identified to 52 out of 68.
As part of the restructuring plan, 13 stores initially closed, with 15 closures on 17 August, and a further 12 on 24 August.
The retailer has since identified the next 12 stores to close after that, with 11 closing on 31 August and one on 14 September.
In March, Pepco confirmed that it was “actively exploring” a potential sale of Poundland amid rising pressures on the business, and instead plans to focus on the Pepco brand as a single future format.
The discount retail group said its “ultimate ambition” is to operate under a single Pepco format, which largely drives the group’s earnings, with a focus on its higher margin Pepco clothing and general merchandise ranges.
