Poundstretcher could potentially close half of its stores in six weeks
By Iain Gilbert
Date: Friday 03 Jul 2020
(Sharecast News) - Discount retailer Poundstretcher could be on track to close as many as half its stores in August, potentially leaving 2,000 jobs hanging in the balance, after landlords and creditors approved a rescue restructuring.
Poundstretcher's rents will be cut by as much as 40% across 84 stores and held at current rates at another 94 as part of its company voluntary arrangement.
While Poundstretcher agreed to continue paying rent on 253 stores for a further six weeks, the company warned landlords that the locations could possibly close after that point if another new deal failed to materialise.
KPMG restructuring partner and joint supervisor of the company voluntary arrangement, Will Wright, said: "The approval of the CVA provides a stable platform from which the company can continue to operate across a more focused store portfolio."
Over 90% of all voting creditors - including an "overwhelming majority" of landlords - approved the insolvency arrangement.
Poundstretcher cautioned that a further 23 stores owned by a company directly linked to it could also be permanently shuttered, with the unit expected to be put into administration as soon as next week.
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10 Lower Thames St,
London EC3R 6EN