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Poundstretcher Needs Restructuring Plan to 'Avoid Administration'
The plan would cut property costs and avoid closures or redundancies as Poundstretcher warns it may otherwise have to file for administration.
- Poundstretcher faces potential administration unless creditors approve a restructuring plan at meetings on May 26. The High Court held a 'convening hearing' on Wednesday, granting permission for the process to advance.
- Since 2020, Poundstretcher's performance has deteriorated due to 'subdued customer confidence, rising operating costs and inflationary pressures.' The Fortress-owned retailer operates 300 stores with 3,000 members of staff.
- Lawyers for the company said it has 'insufficient funds' to meet a £2.8 million bill due in late June. This figure would increase to £9.7 million in the week commencing July 26 without restructuring.
- Working with financial advisor Teneo, Poundstretcher aims to restore 'financial stability' by 'shifting the product mix of the plan company to include more well-known household brands' and optimizing its store portfolio.
- Tom Smith KC told the High Court that directors will 'likely have no choice' but to file for administration if the plan fails. Justice Hildyard said he was 'content' for the process to proceed.
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Total News Sources33
Leaning Left3Leaning Right1Center24Last UpdatedBias Distribution86% Center
Bias Distribution
- 86% of the sources are Center
86% Center
11%
C 86%
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