Poundstretcher stores in Spalding and Market Deeping safe for now after CVA deal
A deal has been done to secure the immediate future of a discount retailer that has branches in Spalding and Market Deeping.
Poundstretcher, whose outlets include Holland Market and Godsey Lane respectively, faced having to close up to half of its 450 stores after a fall in profits.
But creditors of the retailer agreed a company voluntary arrangement (CVA), which sees businesses to pay off debts over a period of time, on Friday allowing Poundstretcher to pay lower rents on some of its stores.
Will Wright, of accounting firm KPMG which was was called in by Poundstretcher, said: "The approval of the CVA provides a stable platform from which the company can continue to operate across a more focused store portfolio.
"One of the UK’s best-known discount retailers, Poundstretcher has suffered from significant impacts to profitability on several fronts over a sustained period, further exacerbated by the impact of COVID-19 on footfall.
"The Group engaged KPMG to undertake a marketing process to explore all strategic options for the business.
"Regrettably, this process did not produce any solvent offers and the CVA seeks to safeguard the long-term future of the business, across a smaller, more sustainable store estate."