Poundstretcher stores at risk as it prepares for CVA

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Poundstretcher CVA store closures covid-19 KPMG Aziz Tayub
Most of Poundstretcher's stores have remained open since the pandemic struck the UK
// Poundstretcher prepares for CVA as it seeks low rents from landlords
// The high street discounter’s stores are at risk of permanent closure

Poundstretcher has reportedly drawn up plans for a CVA that could shutter over half of its store estate in the UK.

The discount chain could launch the CVA within days, as it prepares for the radical restructuring plan in an effort to secure low rents from landlords at 330 of its 450 stores across the UK.

At least 250 of those stores would see rent paid in full for an initial six-week period, after which their continued trading would depend on the outcome of commercial discussions with landlords, Sky News reported.


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The CVA proposals are being supervised by KPMG.

Meanwhile, landlords are understood to have been paid arrears, with the CVA proposals said to allow for all remaining arrears to be paid if the proposal is approved by creditors.

The plans are being deliberated at a time of uncertainty, with major retailers seeking to close stores while also preparing to reopen others after being forced to close due to the government-mandated lockdown.

A CVA would put an unspecified number of jobs at risk, with the final number dependent on the discussions with landlords.

Poundstretcher employs 5500 people across its stores, head office and warehouses.

The retailer was making a loss prior to the Covid-19 pandemic, with owner Aziz Tayub warning that the success of its cost-cutting strategy was vital to securing its future.

Most of Poundstretcher’s stores have remained open since the pandemic struck the UK, because they sell essentials such as food and medicine.

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4 COMMENTS

  1. Seems odd that a cut-price shop should be in a crisis unless they over-borrowed before the pandemic. B&M, Wilkos, Poundland etc likely all doing well. So does this issue predate lockdown etc? In a serious economic downturn with many incomes, threatened discounters should do well.

  2. POUNDLAND sell a poor selection of goods unlike b@m home bargains so they struggle in my opinion
    in stores near these shops

  3. Poundstetcher had all the potential to keep up with the rise of B&M, Homebargains and Poundland but the stock they sold and the management were below-par resulting in a chain that continued to over expand, little to zero advertising, cluttered shops and no presence on the high street let alone online. In the last 20 years all of it’s customers have forgotten about Poundstretcher and why they shopped there and found the rivals better stocked with better prices.

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