Poundstretcher plans rent cuts with landlords as part of major restructure

Discount retailer with more than 300 stores and 3,000 staff seeks to slash rents and property costs while vowing not to shut shops or cut jobs

Poundstretcher has unveiled proposals to ask landlords to reduce rents across its portfolio of stores as it seeks to safeguard its long-term viability, but says it has no intention of closing outlets or shedding jobs.

The discount retailer, which has over 300 stores and 3,000 staff across the UK, confirmed the restructuring will centre on its property portfolio, with the aim of cutting rents and other shop-related costs.

It stated the proposals would “secure the long-term future of the business” and help ensure the store estate “remains sustainable over the long term”.

However, the firm emphasised there were “no planned store closures or proposed redundancies as part of the proposal”.

The group added: “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 by US investment firm Fortress, which also owns Majestic Wine, in 2024 for an undisclosed sum.

Prior to this transaction, Poundstretcher had already undergone a significant restructuring exercise involving rent reductions sanctioned by landlords as part of a Company Voluntary Arrangement (CVA) deal agreed in 2020. The ownership and management team stated they have implemented several measures to strengthen profitability following the acquisition, including operational modifications, a revamp of the product portfolio, investment in pricing and enhanced supplier partnerships.

Andy Atkinson, chief executive of Leicestershire-based 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.”