Huge retail chain sells for about $1, dozens of closures expected
The struggling company has been undergoing changes to survive.
These days, the retail industry seems to be like something out of a horror movie rather than a shining example of consumerism.
Everywhere you look may seem like a graveyard of retailers that once were.
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Or perhaps you see ghosts of retailers past. In fact, some of them are more like zombie retailers, operating as mere shells of what they once were.
No matter which way you slice it, there's definitely something scary going on in the industry right now. And there are a few reasons for this.
For one, Covid completely changed the way many of us shop.
The pandemic put many retailers into survival mode, but not everyone was prepared to fight for their lives.
Many legacy stores or smaller, localized shops suffered under the crushing burden of nonexistent foot traffic. Prolonged weeks or months without robust sales also forced many stores to close for good.
The American Bankruptcy Institute estimates that 60% of stores that closed during Covid never reopened.
But even those that reopened after 2020 found an entirely different world to operate in thereafter. Image source: Getty Images
Some retailers still struggling
The retailers that are still plugging away nowadays are finding it harder to operate in a post-pandemic environment.
Consumer tastes are fickle, even in the best of times.
But today, customers have made complete pivots, away from some traditional behaviors and into new ones.
More closings:
- Popular local Dairy Queen rival suddenly closing, no bankruptcy
- Another big Mexican chain closing down restaurant, no bankruptcy
- UPS suddenly closing more stores amid chaotic new change, layoffs
- Popular fast-food burger chain closes all restaurants in key area
For instance, in 2020, e-commerce sales increased by 43%. In Q1 of 2025, over 15% of all purchases in the U.S. were made online.
Some estimates predict that between 20-25% of all sales will be done so online by the year 2030.
This is a tough transition for many retailers that rely primarily on brick-and-mortar business. And, in many cases, it means that if they do not pivot soon and adapt their sales to find customers and convert well online, they risk being left behind.
Struggling retailer gets a lifeline
But not everyone has been left behind due to the e-commerce revolution alone.
Poundland, a UK-based discount chain that clusters most of its locations around high-transit areas like train stations, has suffered from declining popularity as prices rise.
A higher cost of living in Europe has battered many stores on the continent, and rising competition from online providers, plus an uptick in inventory shrink, has hit sales hard.
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Poundland's parent company, Pepco, had been looking for a buyer to help save the business.
It has also been closing stores across the UK in an effort to shore up profit, and now, it has finally found a buyer.
Poundland will be sold to Gordon Brothers for just £1, indicating how much investment will likely be required up front to help turn around the business.
The firm is investing £80 million to help right the ship. But it's not just money that may help turn things around. Several reports indicate up to 200 stores may shutter as a part of the turnaround plan.
Poundland currently operates over 800 stores and employs about 16,000 people.
"We believe Poundland is an essential retailer serving UK consumers and plays an important role on the High Street," Gordon Brothers Europe Head Mark Newton-Jones said, adding that the chain would "ensure we continue providing exceptional value to budget-conscious consumers in the UK."
