Poundstretcher served notice to vacate stores by over 60 landlords

Poundstretcher
Poundstretcher demanded rent reductions in a restructuring programme
// Poundstretcher receives notice from 63 landlords to vacate stores
// It launched a CVA rescue plan in July last year demanding rent cuts

Poundstretcher has been served with a notice by more than 60 landlords to vacate stores after it demanded rent reductions in a restructuring programme.

The discounter launched a CVA rescue plan in July last year, demanding rent cuts from hundreds of landlords while switching the whole estate to monthly payments.

The deal carved the estate into categories A, B or C. Landlords in B were told their premises were only viable with rent reductions, while those in C were deemed viable “only if zero rent is paid”.


READ MORE: Poundstretcher shrinks estate by 75 stores since CVA


The rent concessions were to be in place for the duration of the CVA, but terms also said it was “not possible to state with any certainty” the length of that process.

However, the CVA also gave category B and C landlords the right to terminate the variety discounter’s leases.

The number of landlords to pull the plug on the retailer has been revealed in a one-year CVA progress report filed at Companies House.

“In accordance with the terms of the CVA, the category B and category C landlords have the right to bring the respective category B and category C leases to and end by serving the company with a notice to vacate,” the report said.

“Since the approval of the CVA, 14 category B landlords and 49 category C landlords have exercised their rights under the CVA requesting the company to vacate the relevant sites.”

Stores on which Poundstretcher has recently been served notice by landlords include a former branch in Wrexham.

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4 COMMENTS

  1. Good on the landlords who need to do the same with the likes of House of Fraser or Frasers another one that likes freebie rent.
    Landlords are always able to give 6 months notice to break the terms of a lease where the CVA has stated a rent reduction is in place. No one should have to rent for no money.

  2. I agree with above comments, not paying rent should NOT be allowed. I hope the units (which are usually of a medium size) will be quickly re-let to a rent paying tenant.

  3. Poundstretcher treat their staff appallingly, wages never correct, 3 members of staff to run large stores, no sick pay, prices have been put up 150% for some items, it’s not function as a business any more time for the father to hand it over and hope what was a decent store can return

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