Poundstretcher is shutting its store in Newtown, Powys, on July 4 after the landlord served notice, as the discount retailer implements a High Court-approved restructuring plan that allows landlords to exit leases.
Store Closure Details
A sign on the door of the Powys store last week read: "Dear customers, unfortunately this Poundstretcher site will be closing Saturday July 4th, due to our landlord serving notice. We apologise and would like to take opportunity to thank all our customers for your custom and support. It has been an absolute pleasure, and all the best in the future."
Poundstretcher operates approximately 300 stores across the UK and employs around 3,000 staff. The company was contacted for comment on the closure.
Restructuring Plan Approved by High Court
Earlier this month, the High Court approved Poundstretcher's restructuring plan, which included rent reductions for 55 stores by between 25% and 75% for up to three years. Landlords were given the option to serve notice terminating leases within 60 days of the plan coming into effect on June 4, according to The Grocer.
At court hearings in May and June, lawyers warned the business would have "insufficient funds" to cover a £2.8 million funding requirement due in the week beginning June 28 if the plan was not approved.
CEO Comments on Restructure
Speaking when the restructure was approved on June 12, Poundstretcher CEO 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."
In March, the company said it would seek rent reductions from landlords as it tried to secure its long-term future, while insisting it was not planning widespread store closures or job losses.
