High street bargain chain with 800 branches closes suddenly in town centre after it ‘didn’t pay its rent’
A BARGAIN high street chain with 800 branches across the UK has been forced to close one down today.
A Poundland in Bolton was seized by the council and a forfeiture notice was slapped on the shutters after allegations it didn’t pay its rent.
The store on Victoria Square owed a “longstanding amount” on its property, according to the council, but Poundland insists they had just paid it.
A spokesperson for Bolton Council said: “As landlords, the council has had no choice but to act in order to retrieve the longstanding amount due on a property that is, ultimately, owned by Bolton council tax payers.
“The tenant operates successfully from a number of premises across the UK and we are confident that the non-payment is due to an administrative oversight.
“We aim to resolve the matter as quickly as possible so the shop can reopen in a matter of days.”
A spokesperson for Poundland said: “We were surprised by the council’s action this morning – not least because we made a substantial rental payment recently and once negotiations for a new lease are concluded will believe we will in fact be in credit on our rental account.
“We will discuss the situation with the council today so we can re-open the store as soon as possible.”
Bolton shoppers were not happy about the news, with one local commenting: “Can Bolton really afford to lose another store, also another building that will be turned into flats.
“Goodbye Bolton town centre.”
Another person commented: “Only the charity shops will be left after Christmas it’s a ghost town.”
A third said: “Such a shame, no real attraction to bring anyone into town centre these days.”
Cllr Linda Thomas, whose ward covers Bolton town centre, said: “That is a great pity, it is a popular shop that serves the town.
“It is a shame, I hope it can be accommodated somewhere else within the regeneration of the town centre.
“I am sure our officers will be doing everything they can to encourage them to stay in Bolton, and I am sure they will.
“We have got a growing community in Bolton town centre that will need shops like this.
“I hope they stick with us, are not too disheartened and can find somewhere else to provide their retail experience from.”
The forfeiture notice at the shop says: “Take notice. To whom it may concern. These premises have today been seized on the authority of the landlord.
“Notice is hereby served and forfeiture of lease effected. No unauthorised persons are permitted entry unless with the prior consent and knowledge of clearway debt squared or the landlord/managing agent.”
According to Poundland’s website, the chain has 850 stores in the UK and the Republic of Ireland.
They opened their first in Burton-upon-Trent in 1990 and employ around 18,000 colleagues.
HIGH STREET TROUBLE
Elsewhere in the UK, Sainsbury’s has announced it will be shutting the store in Stamford Hill, London, as reported by The Sun.
Sainsbury’s confirmed it is closing down the store due to the landlord looking to redevelop the site after the lease expires.
A Sainsbury’s spokesperson told The Sun: “Earlier this year, we shared the difficult news with colleagues at our Stamford Hill supermarket that the landlord intends to redevelop the site.
“The store will remain open and our colleagues will continue to serve the local community as usual between now and the 1st of February, when our lease expires.
“We appreciate this will be an unsettling time for everyone this affects and we are doing everything we can to support them, including exploring opportunities for our colleagues to redeploy to alternative roles within Sainsbury’s.”
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year, and more are coming.
The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.
Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.
“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included Paperchase, Cath Kidston, Planet Organic and Tile Giant.
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
The Body Shop and Ted Baker are the biggest names to have already collapsed into administration this year.
Shoppers were left saddened by the news as they took to social media to speak on the closure.
One posted an image of the shopfront alongside the caption: “Will be sad to see them go and I shudder at what will replace them given what’s happening at another local closed supermarket.
“But times and neighbourhoods do change and such is life.”
Another said: “Damm that’s such a handy supermarket.”
Figures from the Centre for Retail Research revealed 8,543 stores closed and more than 130,000 retail jobs were lost in 2024.
This ongoing issue has seen brands such as Paperchase, and The Body Shop all lose dozens of stores this year.
Also, the rising popularity of online shopping has meant people are favouring digital ordering over visiting a physical store.
Unseasonably wet weather has also deterred shoppers from hitting the high street.