Poundstretcher closing major store in historic UK town on July 4 | UK | News
Poundstretcher is closing a department store in a historic town in England this week. The popular chain selling affordable goods will close its store in Newtown, Powys, reportedly exercising its right to terminate leases due to rent cuts.
Earlier this month, when Poundstretcher’s restructuring plan was approved by the High Court, landlords of more than 100 stores were given the option to exit their leases, despite the retailer saying no closures were planned at the time. As a result, rent for 55 stores has been reduced by between 25% and 75% for up to three years, and landlords have been given the option to give notice to terminate their leases within 60 days of the scheme coming into force on 4 June. General store.
A sign left on the door of the Powys store last week read: “Dear customers, unfortunately this Poundstretcher site will be closing on Saturday 4 July due to our landlord’s notice of service.
“We apologize and would like to take this opportunity to thank all our customers for your special care and support. It has been an absolute pleasure and we wish you all the best in the future.”
Poundstretcher operates around 300 stores across the UK and employs around 3,000 staff. The discount retailer has been 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 sought to secure its long-term future, but insisted it was not planning widespread store closures or job losses.
At hearings in May and June, lawyers warned that if the plan was not approved the business would have “insufficient funds” to meet its £2.8 million funding needs due in the week starting June 28.
Speaking when the restructuring was confirmed 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, as always, is to ensure our UK customers have access to great products at great value.”
