// Matalan & Poundstretcher face pressure to pay rent during the government-mandated lockdown
// Poundstretcher is facing 3 separate claims from L&C Investments, Sheet Anchor Investments & Black Office
Matalan and Poundstretcher are reportedly facing increased pressure from their landlords to pay rent during the lockdown period.
Value fashion retailer Matalan, which is run by billionaire businessman John Hargreaves and has more than 8000 staff across 230 stores, was blindsided by a writ from landlord Sheet Anchor Evolve but has settled the debt, The Daily Telegraph reported.
Meanwhile discount retailer Poundstretcher is facing three separate claims from L&C Investments, Sheet Anchor Investments and Black Office.
READ MORE:
- Matalan billionaire founder seeks £60m after closing 232 stores
- Boots & Poundstretcher in legal dispute over unpaid rent
Poundstretcher, which is run by businessman Aziz Tayub, was struggling prior to the coronavirus pandemic.
Accounts filed earlier this month revealed the retailer had swung to a pre-tax loss of £227,000 on more than £430 million of sales for the year to March 31.
The filing of a winding-up order is traditionally considered as a “last resort” by creditors.
The petition can be advertised on the official public record, The Gazette, nine days after being served on the debtor.
The company in question will see its bank accounts freeze by this point to prevent it from continuing to operate.
Meanwhile, even if the debt is repaid, creditors can continue the company’s winding up.
Moreover, Matalan was seeking £60 million last week to help it survive through the coronavirus pandemic after closing 232 stores.
The retailer said it is considering options to secure “short term funding” after stating that it has not faced “such difficult and unpredictable times” in its 35 years of trading.
The week prior, Poundstretcher was among retailers facing legal action due to its failure to pay rent despite staying open during the lockdown.
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