A major discount retailer is launching a big company reshuffle.
The UK high street chain is expecting to close some stores (Image: Getty)
A major UK high street chain is launching a major restructure.
The budget retailer, Poundstretcher, said: “The proposed restructuring plan is designed to secure the long-term future of the business and create a stable platform for future sustainable growth. It will primarily focus on reducing property costs by seeking rent reductions with landlords and reducing other property costs, helping ensure the store estate remains sustainable over the long term. There are no planned store closures or proposed redundancies as part of the proposal.”
It continued: “The restructuring plan forms one part of the business’ wider turnaround strategy, which also includes investment to strengthen existing locations and for future growth. Poundstretcher will continue to trade as normal while serving millions of customers across its UK store network.”
Poundstretcher was acquired by funds managed by affiliates of Fortress Investment Group (“Fortress”) in April 2024.
Andy Atkinson, CEO 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. Our priority remains serving our customers across the UK, ensuring they have access to great products, at great value. This restructuring plan will help to secure the long-term future of the business by strengthening existing locations and enabling sustainable growth.”
The chain was founded in 1981 and is one of the UK’s leading discount retailers.
In April 2024, it was sold by businessman Aziz Tayub, who owned the company for 18 years, and roughly 4,000 people were employed.
The news comes as the UK High Street is in crisis, with over 13,000 stores shutting down last year, and experts warning that even more are on the horizon, with some of the country’s biggest retailers impacted.
A large portion of High Street shops going out of business this year have been operated by fashion retailers, including the likes of New Look and Quiz. Other retailers closing down stores include WHSmith and Homebase.