Poundstretcher to open 50 new stores despite CVA plans

Poundstretcher is reportedly preparing to open 50 new stores in 2021, despite CVA proposals that have resulted in 50 store closures since early July.

According to a company poster, Poundstretcher is looking for dozens of new sites to open next year, ranging from existing shop units to development sites in town centres and retail parks.

The poster said the company is looking for freehold or leasehold properties, with A1 planning consent “preferred but not essential” and “temporary and flexible arrangements considered”.

This revelation comes after Poundstretcher’s creditors approved the retailer’s CVA proposal, which included a store closure programme in an effort to cut costs by offloading underperforming outlets.

According to reports from Business Live, despite speculation that half the retailer’s 450 stores could be axed, wholesale closures could make a business the size of Poundstretcher unsustainable.

Retail Sector has reached out to Poundstretcher for comment.

Some 50 Poundstretcher stores have closed since CVA proposals were green light in July.

The CVA also secured rent cuts of between 30-40% for 84 of the retailer’s 450 stores, while it was agreed around 94 stores would continue to pay current rents.

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.”