Poundstretcher considering closing over 250 UK stores

Wed, 17 Jun 2020 | ADMINISTRATION

Bargain retailer Poundstretcher could close over 250 outlets, more than half of its stores, as part of a survival plan. The company is asking landlords and other creditors to approve a creditors voluntary arrangement (CVA), through which it is hoping to cuts rents at 84 stores by over 30 per cent for three years.

The CVA is being overseen by KPMG and, if approved, would see 253 stores pay full rent for an initial six weeks, “after which” KPMG said, “continued trading will depend on the commercial merits of each store with the relevant landlords' collaboration”. If rent cuts cannot be agreed, the 253 outlets could close. A further 23 could close as Poundstretcher seeks to put the subsidiary that operates them into administration.

KPMG’s Will Wright outlined the retailer’s struggles: “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 450 UK stores, employing over 5,500 staff. The potential closures could impact more than 2,000 of these jobs. In its 2019 accounts, the company reported sales of £434 million, an increase of 12 per cent from 2018. However, it registered a loss of £227,000, down from a £2 million profit the year prior. Its creditors have until July 2 to vote on the CVA, which would require approval from creditors representing at least 75 per cent of Poundstretcher’s debts.

View the latest distressed UK businesses here.

Share this article

Latest Businesses for Sale

Eco-Friendly, Recyclable & Biodegradable Products Online Retailer
UK Wide

Has in excess of 2,100 subscribers, all of whom provide reliable, repeat business on an ongoing basis, in addition to a high volume of customers making one-off purchases. Operates from leasehold premises; however, the company could be relocated to a...

Asking Price: Offers Invited
Turnover: £1,067,787


High End Sewing Machines Retailer
UK Wide

Flagship retail store specialising in the highest-end brand of sewing machines. Loyal and affluent clientele coming from all over the UK (and overseas). This business has been a leader in the field for 24 years. The sewing machine market is booming,...

Asking Price: £350,000
Turnover: £700,000


Provider of Merchandise
UK Wide

A long-established provider of promotional merchandise both plain and branded for a high-calibre client base. Using a large network of suppliers the company boasts a vastly comprehensive range. Dedicated staff nurture client relationships and promote...

Asking Price: Offers Invited
Turnover: £5,000,000

View more businesses for sale

News Search

Latest News


Mobile phone supplier and recycler goes into administration | ADMINISTRATION

Mobile phone refurbishment company Redeem UK has gone into a...


John Lewis to close eight stores as COVID-19 accelerates shift to online | BUSINESS NEWS

Department store chain John Lewis has said that eight of its...


Chancellor cuts VAT on hospitality as part of £30 billion rescue plan | BUSINESS NEWS

Chancellor Rishi Sunak has announced a £30 billion pla...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide


Related News


Mobile phone supplier and recycler goes into administration | ADMINISTRATION

Mobile phone refurbishment company Redeem UK has gone into a...


Joe.co.uk owner acquired out of administration | BUSINESS SALE

Joe Media Limited, the UK parent company of JOE.co.uk, a pop...


Byron Burger on the brink of administration | ADMINISTRATION

The owners of fast-casual chain Byron Burger are preparing t...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources