Poundstretcher could close up to 253 stores
Poundstretcher could close up to 253 stores as part of a survival plan.
The discount retailer has launched a Company Voluntary Arrangement proposal as it looks to restructure its store portfolio and stem losses from underperforming shops.
The CVA will be overseen by Will Wright and David Costley-Wood from KPMG’s restructuring practice.
Wright said: “One of the UK’s best-known discount retailers, Poundstretcher has suffered from significant impacts to profitability on several fronts over a sustained period, which were then further exacerbated by the impact of Covid-19 on footfall.
“With the directors of the business having explored a number of options, this CVA seeks to safeguard the long-term future of the business, across a smaller, more sustainable store estate.”
Poundstretcher has over 450 stores across the UK and a distribution centre in Leicester. It employs in excess of 5,500 people in its store network, warehouse and head office.
Under the proposal, up to 253 shops could be closed if landlords do not agree to rent reductions or holidays.
An additional 23 stores under leases where the tenant is a connected company could also be shuttered due to the directors’ plans to place the company into administration prior to the decision date of the CVA.
Poundstretcher needs to secure at least 75% creditor approval by value for the CVA for it to proceed.
