// 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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