Poundstretcher has unveiled a restructuring plan that will seek to slash rents across its 300-store estate.
The discount retailer said the restructure will focus on its property bill by cutting rents rather than closing stores or making staff redundant.
It said the plan would “secure the long-term future of the business” and help ensure the store estate “remains sustainable over the long term”.
A spokesperson for Poundstretcher said: “Over the past year, as with many businesses in the retail sector, Poundstretcher has experienced challenging trading conditions driven by a difficult macroeconomic environment.
“Despite a clear strategy and significant work to reduce central costs and refresh the product offering, wider pressures facing the high street have continued to impact sales and profitability.”
Poundstretcher was acquired in 2024 by US investment firm Fortress, which also owns Majestic Wine and Punch Pubs. In 2020, Poundstretcher underwent a major restructuring via a company voluntary arrangement deal, in which rents were reduced at more than 80 stores – at the time its portfolio stood at over 450 stores.
Andy Atkinson, chief executive of Poundstretcher, said: “This plan we’ve set out today will reduce our cost base and enable us to invest in our stores, our people and the overall customer experience.
“This restructuring plan will help to secure the long-term future of the business by strengthening existing locations and enabling sustainable growth.”
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