Poundstretcher is shutting a huge store in a historic UK town this week. The popular chain that sells affordable products will be closing its store in Newtown, Powys, reportedly exercising its right to terminate leases over rent cuts.
Earlier this month, landlords of over 100 stores were offered an option to exit leases when Poundstretcher’s restructure plan was approved by the High Court, despite the retailer saying at the time that no closures were planned. As a result, the rent for 55 stores was reduced by between 25% and 75% for up to three years, with landlords given the option to serve notice terminating leases within 60 days of the plan coming into effect on June 4, reports The Grocer.
A sign left on the door of the Powys store last week said: “Dear customers, unfortunately this Poundstretcher site will be closing Saturday July 4th, due to our landlord serving notice.
“We apologise and would like to take opportunity to thank all our customers for your custom and support. It has been an absolute pleasure, and all the best in the future.”
Poundstretcher operates approximately 300 stores throughout the UK and employs around 3,000 staff. The discount retailer was contacted for a response regarding the closure of its store in Powys.
In March, the company said it would seek rent reductions from landlords as it tried to secure its long-term future, while insisting it was not planning widespread store closures or job losses.
At court hearings in May and June, lawyers warned the business would have “insufficient funds” to cover a £2.8 million funding requirement due in the week beginning June 28 if the plan was not approved.
Speaking when the restructure was approved on June 12, 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.”