Talking Retail Grocery and product news for independent retailers
More than 90% of creditors approved the Company Voluntary Arrangement (CVA), which has secured rent cuts of between 30% and 40% for 84 of its 450 stores over the next three years, while around 94 stores will continue to pay current rents.
In addition, the retailer has agreed to pay rent on 253 stores for six weeks, but warned landlords that the outlets could close after that if new deals could not be agreed.
Will Wright, restructuring partner at KPMG and joint supervisor of the CVA, said: “The approval of the CVA provides a stable platform from which the company can continue to operate across a more focused store portfolio.”
The deal is part of a wider turnaround plan to restructure Poundstretcher’s UK store portfolio, which also includes “stemming losses from underperforming outlets, realigning head office costs and paving the way for investment in the business’ core estate and product offering”.
