// Poundstretcher to open 50 new stores in 2021

// The new sites will range from existing shop units to development sites in town centres and out-of-town retail parks

Poundstretcher is reportedly seeking to open 50 new stores despite recently launching a store closure programme in an effort to cut costs.

According to a poster produced by the business, it is on the look-out for dozens of new sites to open in 2021.

These sites will range from existing shop units to development sites in town centres and out-of-town retail parks.

READ MORE: Creditors green light Poundstetcher’s CVA proposal

The poster said the business is looking for freehold or leasehold properties, with A1 planning consent “preferred but not essential” and “temporary and flexible arrangements considered”.

It also offers a £500 bonus for successful tip-offs.

The news comes as Poundstretcher creditors green light the retailer’s CVA proposal to help it offload underperforming outlets, realign its head office and pave the way for investment in its estate.

Although half its 450 stores could be axed, such wholesale closures could make a business the size of Poundstretcher unsustainable, Business Live reported.

So far, 50 stores have closed down since CVA proposals were approved in early July, either due to being on the list for closure or as a result of landlord was not negotiating to reduce the rents.

Poundstretcher directly employs in excess of 5500 people in its store network, Leicester warehouse and head office.

The deal also secured rent cuts of between 30 per cent and 40 per cent for 84 of its 450 stores, while it was agreed around 94 stores would continue to pay current rents.

“The approval of the CVA provides a stable platform from which the company can continue to operate across a more focused store portfolio,” KPMG restructuring partner and joint supervisor of the CVA, Will Wright said.

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