Discount retailer Poundland has been saved from administration after the company’s restructuring plan received approval from the High Court.

The discounter launched a court-sanctioned recovery plan and requested approval ahead of falling into administration.

As part of the new agreement, Poundland’s £30 million secured loan from PepCo Group has been extended to a maturity date of 1 September 2030.

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.”

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He added: “We acknowledge the direct impact our plans have had on them and reconfirm 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.”

After the approval, Poundland will begin to execute its turnaround plan, which involves closing down 68 stores, streamlining operations and reducing its chilled food offer.

The discounter was sold to a US-based firm, Gordon Brothers, for £1, which will support the ongoing turnaround strategy.