Poundstretcher could close more than 250 stores
More than 250 Poundstretcher stores across the country could close in the wake of the Covid-19 pandemic.
The discount retailer, which has a store in Thetford's Minstergate as well as in Diss and Haverhill, this week announced a Company Voluntary Arrangement (CVA) proposal, in which it asks landlords and creditors to back plans to cut rents by more than 30 per cent.
If the rent reductions cannot be agreed, Poundstretcher, which has more than 450 stores and 5,500 employees UK-wide, will be forced to close 253 of its shops.
A connected company, Poundstretcher Properties Limited, which owns a further 23 stores is also to be put into administration prior to the CVA decision.
Will Wright, from KPMG who is handling the CVA, 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 needs to secure at least 75 per cent creditor approval by value for the CVA for it to proceed.
They will have until July 2 to vote.
More by this authorRhoda Morrison
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