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.
This is a profitable Post Office and Newsagent in Sunderland. The business is one of the busiest Post Office in Durham County.
LEASEHOLD
Strategically located in a high-traffic area with excellent visibility. Offering a loyal and diverse customer base that values the convenience and quality offered.
LEASEHOLD
A charming and thriving food led retail establishment located in the heart of Rotherham. With a strong local presence and a commitment to providing exceptional products and services, Wentworth village shop offers an excellent opportunity for potentia...
LEASEHOLD
18
|
Apr
|
Education specialist makes second LDC-backed acquisition | BUSINESS SALE
Hybrid, an education media and marketing services firm, has ...
18
|
Apr
|
Administrators appointed to SPV behind £24m Bolton redevelopment | ADMINISTRATION
A special purpose vehicle (SPV) behind a £24 million r...
17
|
Apr
|
Hoxton Capital Management targets more M&A after double acquisition | BUSINESS SALE
International independent financial advisory firm Hoxton Cap...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.