Poundland to halt rent payments at hundreds of stores amid restructuring
According to Sky, a letter sent to creditors in the last few days said that roughly 250 shops have been classed as Category C sites, with rent payments at these stores ‘reduced to nil’
Poundland will reportedly pause rent payments at hundreds of shops if a restructuring plan is approved by creditors later this summer, Sky News has reported.
Poundland’s new owner, investment firm Gordon Brothers, which acquired the retailer last week, is proposing to halt all rent payments at ‘Category C’ shops across the country.
According to Sky, a letter sent to creditors in the last few days said that roughly 250 shops have been classed as Category C sites, with rent payments at these stores “reduced to nil”.
Poundland will reportedly have the right to terminate leases with 30 days’ notice at roughly 70 of these loss-making stores after the restructuring plan is approved, and with 60 days’ notice at about 180 more sites.
In addition to the zero-rent proposal, hundreds of stores may see rent payments cut by between 15% and 75% if the restructuring plan is approved.
The letter did not confirm how many shops will close under the new owner.
One source told Sky that a sanction hearing, where creditors will vote on the plan, is due to occur on or around 26 August.
Last week, Pepco Group announced that it sold Poundland to investment firm Gordon Brothers for £1.
The deal will provide the discount retailer with £80m in financing to be used for restructuring and turnaround.
The business will continue to operate under the Poundland brand in the United Kingdom and under the Dealz brand in the Isle of Man and Republic of Ireland. Furthermore, current managing director Barry Williams will step up to chief executive and lead the company.
Poundland has been contacted for comment.
