The UK High Court has approved a rescue plan for Poundstretcher that will see the variety retailer keep its more than 300 UK stores open.

Its plan, approved by 93 per cent of voting creditors, centres on rent reduction agreements with landlords, greater investment in stores, and changes to its product offerings.

Poundstretcher employs approximately 3,000 people across more than 300 sites in the UK. It had submitted its plans in March to explicitly avoid store closures.
Poundstretcher had previously warned that without the deal it would be forced to enter administration.

In documents submitted to creditors, the firm stated it could not meet a £2.8 million payment due on 28 June without the plan and required total funds of £9.7 million by the week commencing 26 July.

Andy Atkinson, chief executive at Poundstretcher, 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."

First founded in 1981, Poundstretcher has struggled to turn a profit in recent years and was negatively impacted by the COVID pandemic. In 2020, the firm issued a Company Voluntary Arrangement proposal including rent reductions across its stores.

In 2024, Majestic Wine owner Fortress Investment Group acquired Poundstretcher for an undisclosed sum. Poundstretcher had struggled financially leading up to the acquisition, with a pre-tax loss of £9.8 million in the year leading up to 31 March 2024.

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