THE FUTURE of around 100 staff at Poundland has been plunged into doubt after the retailer confirmed plans to close down its distribution hub in Darton.
Poundland bought the warehouse, at Darton Business Park on Barnsley Road, from Fulton’s Frozen Foods following its acquisition of the business.
However, after labelling the Barnsley unit a ‘true centre of excellence’, bosses announced this week that there were plans to close it later this year.
The firm is seeking court approval for a restructuring plan which will shut 68 shops and secure rent reductions for many more.
There are currently five stores operating in Barnsley two in the town centre and one in Kendray, Wombwell and Cortonwood though the locations of the proposed closures have yet to be announced.
However the firm has announced that it plans to close its digital distribution site in Darton later this year, as well as the West Midlands warehouse early next year.
Around 350 people will be affected by the warehouse closures.
It will also stop selling frozen food at stores where it’s currently offered and reduce its chilled food offer in the future.
The warehouse closures are also linked to Poundland’s plan to stop online sales through its Poundland.co.uk website.
Barry Williams, managing director of Poundland, said: “It’s no secret that we have much work to do to get Poundland back on track.
“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.
“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.
“It goes without saying that if our plans are approved, we will do all we can to support colleagues who will be directly affected by the changes.”
Last month, Poundland reported revenues dropped by 6.5 per cent to £830m for the six months to March, compared with a year earlier.
The brand suffered ‘challenges across all categories’ and had 18 net store closures over the period.
Coun Trevor Cave, who represents the Darton West ward, told the Chronicle the council will support those who are affected by the decision.
He added: “We’re sorry to hear of the planned closure of the Poundland distribution centre in Darton.
“We’ll do everything we can to help the workers during this difficult time and have already been in contact to offer redundancy support for all those affected from Barnsley.”
