UK discount chain Poundstretcher has set out plans for a property restructuring to reduce its cost base, saying the proposal does not involve shutting shops or cutting jobs.
In its statement, the company said the planned restructure is intended to “secure the long-term future of the business and create a stable platform for future sustainable growth”.
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The proposal is largely aimed at reducing property expenses, including discussions with landlords to seek rent reductions, alongside other measures to reduce premises-related costs.
The announcement follows a report that the retailer could face a reduction in its store footprint as its owner weighed a court-supported restructuring process.
Poundstretcher clarified: “There are no planned store closures or proposed redundancies as part of the proposal.”
Poundstretcher CEO Andy Atkinson said: “This plan we have 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 company said it has faced “challenging” trading over the past year, citing a difficult macroeconomic backdrop affecting the wider retail sector.
It added that, although it has pursued a defined strategy and worked to cut head office costs and update its product mix, ongoing pressures on the high street have continued to weigh on sales and profitability.
Poundstretcher described the property plan as one element of a broader turnaround programme, which also includes investment intended to strengthen existing sites and support longer-term growth.
The business said it will continue operating as usual across its UK network.
Poundstretcher had close to 320 stores around 18 months ago.
The retailer was acquired in April 2024 by funds managed by affiliates of Fortress Investment Group.
