Sunday, October 17, 2021

99p Stores the latest victim of administration

Budget retail chain 99p Stores has entered administration, shuttering the doors of its 60 stores around the UK.

Steinhoff, the owner of the chain, has reportedly appointed Alix Partners to administrate the business.

While the shops have been closed, job losses have been kept to a minimum as most staff are set to be transferred to Poundland, which is also owned by Steinhoff.

Poundland had bought its rival just two years ago – before Steinhoff took over – and planned to convert 250 of its stores, but the retailer struggled with the acquisition.

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According to the Retail Week, the 99p Store locations – which were not converted to Poundland -were axed because they were deemed unprofitable.

A spokesperson for Poundland said: “It‘s no secret that the previous management of Poundland had difficulties digesting its 99p Stores acquisition.

“However, we‘ve largely completed the store closure programme that addressed the remaining overlaps from that 99p acquisition.”

The news is another blow to UK retail after a series of struggling retailers entered administration this month, with the latest being footwear retailer Brantano last week.

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