Poundland has announced the completion of a sweeping restructure that saw the discount retailer close nearly 150 shops and axe 2,200 jobs, though it concedes there remains “much to do” to stabilise the business.

The troubled chain, which secured High Court approval for its restructuring plan last August, confirmed it concluded the year with 651 sites, a significant reduction from approximately 800 stores prior to the overhaul.

Its workforce also diminished from 14,200 to around 12,000 by the end of last year.

The extensive revamp also involved the closure of two of its four warehouses, located in Darton, South Yorkshire, and Springvale in Bilston, West Midlands.

Additionally, its customer service centre in Walsall, also in the West Midlands, underwent a reorganisation.

In an update issued on Friday, Poundland stated that the large-scale shop closures are now concluded.

The company clarified: “Any future closures will be a consequence of standard business-as-usual lease events expected at a retailer with a large store network.”

Christmas trading figures revealed a 2.9 per cent drop in like-for-like underlying sales for the quarter ending 28 December.

This decline was attributed to the retailer’s strategy of slashing prices to return to its core discount roots, a move that saw comparable store sales by volume lift by 2 per cent.

Underlying earnings in its first quarter rose £8.4 million to £17.3 million, in line with its expectations.

Poundland managing director Barry Williams said: “While there’s been significant progress as we refocus and re-energise the business with lower prices and a sharper offer, we know we still have much to do.

“Our focus on our costs has, without doubt, given us a platform for future growth, but no sustainable turnaround can be based on cost management alone.

“That’s why our focus in 2026 will be on delivering the kind of ranges and price simplicity our customers want right across the store – in clothing, homewares, as well as our core grocery aisles.”

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Poundland was sold for £1 to investment firm Gordon Brothers in June last year.

It avoided entering administration after a restructuring plan was approved in the High Court in August, days before the company was due to run out of money.

Recovery efforts since have focused on simplifying the business, including by cutting stores but also by overhauling its pricing structure and removing some categories, such as frozen foods and some chilled ranges, as well as ditching its online offering.

It is returning to a simple £1, £2 and £3 grocery pricing across all its UK shops – with around 60 per cent of grocery items priced at £1.

The group is relaunching in-house designed Pep&Co clothing to its UK and Ireland stores, with 90 per cent of items priced below £10 to be available from next week.

It is also next week launching a nationwide ad campaign “to highlight the everyday value” of ranges.