Last week Poundland announced a major restructuring which involves extensive store closures and job losses. The budget retailer is embarking on a significant turnaround plan, including the closure of 68 stores, putting well over 1,000 UK jobs at risk. Two distribution centres in Darton and Bilston are also destined for closure. Further store reductions, potentially around 70, may occur due to lease expirations and sought-after rent reductions.

Recently sold for just £1 to US investment firm Gordon Brothers, Poundland aims to revive its struggling performance. The plan, awaiting court approval, seeks to secure the future of the remaining workforce and stores. As part of the overhaul, Poundland will stop selling frozen food and cease online orders, focusing instead on essential groceries and expanding its womenswear and seasonal merchandise. The company, which serves over 20 million shoppers annually, acknowledges the need for drastic action to return to growth after a lengthy period of underperformance.

Read more in this BBC report

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Swiss solar panel manufacturer Meyer Burger Technology's German subsidiaries, Meyer Burger (Industries) and Meyer Burger (Germany), have filed for insolvency after unsuccessful restructuring efforts. This affects 620 employees across solar cell production in Bitterfeld-Wolfen and mechanical engineering in Hohenstein-Ernstthal. Efforts to continue operations will proceed under insolvency proceedings.

This follows Meyer Burger's request for an extension to present 2024 financial results amid ongoing financing talks. While Swiss operations continue, Meyer Burger (Americas) laid off all 282 employees and halted production at its Goodyear, Arizona, facility due to funding and raw material shortages, casting uncertainty on its future. Meyer Burger is still negotiating with bondholders for restructuring.

Full story here

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Frasers Group is nearing a takeover of troubled Norwegian sportswear retailer XXL ASA, having secured over 92% of its share capital and 90% of voting shares. Despite this, Frasers has issued stark warnings, emphasizing XXL's "significant distress" and uncertainty about its rescue.

Frasers stated that saving XXL, which operates 85 stores across Norway, Sweden, and Finland and employs over 4,000 people, will require collaborative effort from all stakeholders. The Sports Direct owner expressed concern that XXL's financial position has deteriorated, partly due to a lack of support from major shareholders who previously turned down Frasers' earlier offers to help stabilise the business. They state that “there is no guarantee that XXL can be saved in its current form or at all.”

Read more in Retail Gazette

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Clark, the German insurtech, is cutting around 20% of its workforce in Germany, primarily in the IT departments at its Berlin and Frankfurt offices. These layoffs, announced in late May, are described as necessary restructuring and mark the company’s first major internal cost-cutting move. 

These cuts are not officially tied to an IPO or financing round, though the company is reportedly seeking €100 million in funding with Deutsche Bank. Clark, which exited Austria in 2023 via a management buyout, had a profitable 2023 and grew revenue by 35% to over €135 million. Recent leadership changes - including a new CEO and CPO/CTO - signal broader strategic shifts as Clark aims for sustainable growth in their competitive market.

Reported here in AbfindungsHero

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Zomato's parent company, Eternal, has begun the liquidation process for its Netherlands subsidiary, Zomato Netherlands. This move effectively closes down nearly all of Zomato's international operations, as the subsidiary had no active business and generated no turnover in FY24. The liquidation is expected to be completed within a year and will not impact Eternal's revenue. 

Zomato’s bid to take food delivery international was not successful and has resulted in a trend of Zomato discontinuing its international ventures since 2021. This includes ceasing operations in Portugal, Czech Republic, Slovakia, Singapore, UAE and Australia, to focus on its successful business in India, which achieved profitability in FY24.

More details here.

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