Poundstretcher vows not to cut stores or jobs as it launches restructure

Poundstretcher has revealed plans to ask landlords to slash rents across its store estate as it looks to secure its long-term future, but insisted it is not shutting shops or cutting jobs.

The discount retailer, which has over 300 stores and 3,000 staff across the UK, said the restructure will focus on its property, with aims to reduce rents and other costs linked to shops.

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

But the firm stressed 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 bought by US investment firm Fortress, which also owns Majestic Wine, in 2024 for an undisclosed sum.

Before this deal, Poundstretcher had already undergone a major restructuring plan involving rent cuts approved by landlords as part of a Company Voluntary Arrangement (CVA) deal agreed in 2020.

The owner and management team said they have made a number of moves to bolster profits since the takeover, including operational changes, a refresh of the product range, investment in price and stronger relationships with suppliers.

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.”