// Creditors approve Poundstretcher CVA proposal
// The CVA includes major rent cuts for much of its store estate and forms part of a wider restructure
// No job cuts or store closures are part of the procedure
Poundstretcher has had a major restructuring plan involving rent cuts approved by its creditors.
More than 90 per cent of creditors approved the discount retailer’s CVA proposals, which will bring rent cuts of between 30 per cent and 40 per cent for 84 of its 450 stores over the next three years, while another 94 stores will continue to pay current rents.
The CVA also means another 253 at-risk Poundtstetcher stores will pay six weeks full rent before adopting them based on each store’s “commercial merits”.
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- Poundstretcher store closures likely as KPMG is drafted in
Job cuts and store closures do not form part of the CVA, which was first put forward on June 16.
Poundstretcher previously stated that the CVA forms part of a wider turnaround plan which seeks to restructure its UK store portfolio, stem losses from underperforming outlets, realign head office costs and pave the way for investment in its core estate and product offering.
Will Wright and David Costley-Wood from KPMG were drafted in to oversea the CVA process.
“The approval of the CVA provides a stable platform from which the company can continue to operate across a more focussed store portfolio,” Wright said.
Poundstretcher directly employs in excess of 5500 people in its store network, Leicester warehouse and head office.