Poundstretcher: Court approves Poundstretcher restructuring plan

The retailer has described trading over the past year as challenging. Credit: Nigel J. Harris / Shutterstock.com. · Retail Insight Network · Nigel J. Harris / Shutterstock.com. UK retailer Poundstretcher has secured court approval for its restructuring plan, following support from 93% of voting creditors by value. The company, which operates more than 300 stores across the UK, said the plan had first been outlined on 31 March. It stated that the measure is intended to support the company's longer-term position as it continues a wider turnaround effort. When the company first set out the property restructuring proposal in March, it said that it was designed to reduce its cost base without closing shops. The announcement followed a report that the retailer could face a reduction in its store footprint as its owner weighed a court-supported restructuring process. In its latest statement, the company said the restructuring does not involve store closures and that trading has continued across its estate during the process. Poundstretcher said the approved plan sits alongside a broader strategy aimed at reshaping the business. This includes investment in stores, changes to product ranges and plans linked to future growth. In the coming months, the retailer said it will continue to direct spending towards its product offer, store estate and customer experience. Poundstretcher CEO Andy Atkinson said: "Today, our company is in a stronger position to continue investing in our stores, our people and the overall customer experience. Our priority now is exactly what it has always been - ensuring our customers across the UK have access to great products at great value." The retailer has described trading over the past year as challenging, pointing to a tough macroeconomic environment affecting the wider retail market. It said that while it had pursued a set strategy, reduced head office costs and adjusted its product mix, continuing pressures on the high street had affected sales and profitability. The company was acquired in April 2024 by funds managed by affiliates of Fortress Investment Group. "Court approves Poundstretcher restructuring plan" was originally created and published by Retail Insight Network , a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.