A major UK budget retailer has been saved from collapse after a court approved a rescue deal. Poundstretcher, which operates over 300 stores across the country, had its restructuring plan approved today, securing the future of 3,000 jobs.
The discount chain informed the High Court earlier this year that it had insufficient funds to pay a £2.8 million bill due in late June. Without intervention, the cost would have risen to £9.7 million by the end of July. The court heard that if the restructuring plan was blocked, Poundstretcher would have no choice but to file for insolvency, with stores remaining open only until all remaining stock was sold.
Rescue Plan Details
As part of the overhaul, landlords will be forced to accept rent cuts. In return, the discount chain must commit to an operational turnaround. The company said it will continue to invest in its product ranges, stores, and overall customer experience, aiming to offer great products at great value.
Chief Executive's Statement
Chief executive Andy Atkinson said: Today, our company is in a stronger position to continue investing in our stores, our people, and the overall customer experience. Our priority now is exactly what it has always been – ensuring our customers across the UK have access to great products at great value.
Poundstretcher has faced significant challenges since 2020 due to high operational costs, inflationary pressures, and reduced customer confidence. These challenges put the chain in an extremely difficult position, making the rescue deal a crucial lifeline.
