Poundland will be closing 80 stores in the UK after its takeover by the South African company Steinhoff International Holdings, retailgazette.co.uk has reported.
The company agreed to buy Poundland Group Plc for £597 million in July after a lengthy bidding process.
Poundland saw an 84% decrease in profits after acquiring the 99p Stores chain for 50 million last year, which took nearly six months to complete. The other company's loss of credit insurance was credited for the delay, which sent stocks plummeting.
The website said that the store closures could be an effort to eliminate duplicate stores, as the 2015 merger saw 235 99p stores rebranded in different locations before Steinhoff's takeover.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. To subscribe to ESM: The European Supermarket Magazine, click here.
