Poundland is considering exiting frozen food and scaling back its online operations as part of a major restructuring by its new owner, Gordon Brothers.

The US investment firm, which bought the struggling discount chain for a nominal sum last week, has proposed the closure of 68 stores and two distribution centres, while also implementing widespread rent reductions across its store estate.

If approved, it is understood that the changes could place up to 1,350 jobs at risk as the business currently employs around 16,000 people across more than 800 stores in the UK and Ireland.

However, Irish stores, which operate under the Dealz banner, are thought to not affected by the proposals.

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Poundland said the plans aim to create a “financially sustainable operating model” following a period of underperformance.

Most significantly, the restructure could see frozen and chilled products removed from stores, and online operations reduced to a browsing-only experience.

As a result, the retailer plans to close its Darton distribution centre in South Yorkshire later this year, and its national distribution centre in Bilston, West Midlands, in early 2026.

However, managing director Barry Williams said the turnaround plan is essential to safeguard the long-term future of the brand.

“While Poundland remains a strong brand, serving 20 million-plus shoppers each year, our performance for a significant period has fallen short of our high standards and action is needed to enable the business to return to growth,” he told Sky News. “It’s no secret that we have much work to do to get Poundland back on track.

“It’s sincerely regrettable that this plan includes the closure of stores and distribution centres, but it’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores.”

He added, following the overhaul, the retailer expects to operate between 650 and 700 stores.