Major high-street retailer announces restructuring and Leeds drinks manufacturer falls into administration
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Poundland
After being sold to US Investment Group Gordon Brothers for £1 last week, their restructuring plans for Poundland are now being announced.
The first announcement is to shut 68 shops and two distribution centres with additional plans to close another 80.
This would take the estate profile from 800 to 650 outlets.
They are also planning to ask landlords to cut rents to zero on a further 180 stores and seeking rent reductions of between 15% and 75% on several more.
These plans will be put to creditors to vote on in August.
The business are also stopping selling products online, closing their Perks loyalty app and reducing their range to cease selling frozen foods and reducing the chilled foods range including sandwiches and milk.
This will mean the closure of their frozen and digital distribution centre at Darton in South Yorkshire and their national distributions centre at Bilston in the West Midlands by early 2026. Two other distribution centres in Wigan and Harlow will continue to operate.
Poundland was formed in 1990 and was sold by owners Pepco Group in March as a result of “challenging trading conditions” and problems with their clothing and homeware ranges. The new owners have promised to invest up to £80 million to help turn the business around.
Poundland Managing Director Barry Williams 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.”
Mighty Drinks
A Leeds based dairy-free alternative milk brand has gone into administration citing rising costs and fragile consumer confidence.
Mighty Drinks produced a specialist range of pea protein and oat milk drinks through a nationwide distribution network of supermarkets and health stores.
Like many others in the plant-based food sector, the company had faced trading headwinds in recent years including rising costs and the impact of fragile consumer confidence which impacted its ability to scale and ultimately achieve profitability.
Directors looked at exploring investment options but when none were forthcoming the only viable option was to appoint liquidators.
A statement issued by the business said: “Mighty Drinks created great products with an exciting kids-milk range set to launch with retailers given the allergen free benefits of pea-protein with a path to profitability from improved margins and increased volumes.
“Unfortunately, this came at a point in the company’s cycle where it required further investment which was not forthcoming from typical investors in this space nor was it attractive to typical “special situations” investors given the relatively early stages of the company’s development.”
Alufold Direct
An aluminium door and window system manufacturer in Blackburn has appointed administrators.
Alufold Direct was formed in 2014 but has ceased trading and made all staff redundant as a result.
A statement was issued by directors: “Alufold Direct was a recognised player in the UK aluminium fenestration market but unfortunately the business became increasingly constrained by liquidity pressures.
“Despite the best efforts of the management team to secure a solvent sale with strong interest in the business they couldn’t complete the transaction in time. The administrators are focusing on preserving value and exploring other potential sale options.”
GB-Bio
A Hull biomass plant has gone into administration but a sale has been agreed to new owners for land, plant and machinery avoiding employee redundancies.
The Tansterne Biomass Plant is a 23 megawatt electrical (MWe) Renewable Obligation Certificate (ROC) accredited advanced biomass plant.
It’s a modular waste wood fired power plant procured by GB-Bio under a multi-contract delivery strategy. The plant can also function as a combined heat and power facility with potential to supply district heating networks in the future.
Following a number of challenging years including Covid-19, operational challenges and delays in receiving ROC accreditation and the administration of the company that designed the plant. They were given nine months to recommission under a High Court sanctioned scheme of arrangement in the Republic of Ireland.
A decision was taken to sell the plant in order to raise funds to repay investors but a solvent sale process was unsuccessful and with no clear ability to raise further capital through equity investment or a share sale, the company entered a formal insolvency process.
A statement was issued from the administrators saying: “After a thorough robust marketing process, we’re delighted that the sale provides a materially better return to creditors than would be expected in a shutdown scenario. In addition, the transaction has avoided employee redundancies, mitigating employee creditor claims.”
Otterburn Mill
A historic Northumbrian textile mill has gone into voluntary liquidation with the loss of 28 positions.
Otterburn Mill had been operating for over 30 years operating two stores including a working textile mill that manufactured wools and tweeds.
The business faced ongoing challenges in the aftermath of the Covid-19 pandemic with footfall never returning to previous levels. The unexpected loss of a key supplier, combined with rising operational costs and shifts in shopping habits, placed further strain on the business.
Coupled with the ongoing cost-of-living crisis and enforcement action taken by HMRC over unpaid liabilities, the business was left with no option but to cease trading.
A statement from the board of directors said: “Otterburn Mills was a well-known and respected local business that had built a loyal customer base over many years.
“The retailer was faced with an array of challenging headwinds that many high-street brands will recognise and, despite their best efforts, have not been able to find a viable way forward for the business.”
Scotbeef
An Aberdeenshire abattoir has closed with immediate effect and gone into voluntary liquidation amid mounting industry pressures.
The Scotbeef abattoir in Inverurie ceased operations after an internal review concluded that shutting the facility was necessary to safeguard the future of the wider business.
This continues the growing trend of abattoir closures across the UK. According to industry reports, more than a third of small abattoirs have closed in the past two decades, squeezed by rising costs, labour shortages and tightening regulations.
Farmers and campaigners have warned that the loss of processing capacity threatens animal welfare, increases transport times and undermines rural economies already under strain.
A statement from the business said: “Despite our best efforts to address the sustained challenges within the UK meat and beef industry over the past 18 months, we have unfortunately taken the difficult decision to close our Inverurie site.
“Decisions such as these are never easy, and we understand that there will be a significant impact on our staff, many of whom have shown loyalty and commitment to the business over many years.”
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