Poundstretcher creditors are due to vote today (26 May) on a restructure plan to save the variety discounter from the brink of administration.
A lawyer for Poundstretcher told the High Court earlier in May that Poundstretcher was likely to file for administration and sell off remaining stock if the plan did not go ahead.
The restructure is focused on reducing property costs including seeking rent reductions from landlords. Poundstretcher, which has about 300 stores and employs more than 3,000 people across the UK, has said no closures or redundancies are planned as part of the process.
The retailer has blamed challenging trading conditions over the past year, which have impacted sales and profitability despite a turnaround strategy.
Tom Smith KC, representing Poundstretcher, said the performance had “continued to deteriorate due to subdued customer confidence, rising operating costs and inflationary pressures”.
Poundstretcher was bought by US investment firm Fortress in 2024, ending 16 years of former owner Aziz Tayub’s control of the retailer. Changes to boost profitability under Fortress ownership have included refreshing the range, investing in prices and building stronger relationships with suppliers, according to the retailer.
It is just the latest variety discounter to experience trading difficulties, including Poundland closing about 150 stores last year and The Original Factory Shop collapsing into administration in January this year, leading all stores to close by April.
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