Low-cost variety store Poundstretcher has proposed a CVA which will assist in the turnaround of its business. Reliant on achieving rent cuts as well as pruning its head office costs, the retailer which employs 5500 staff is using KMPG’s Will Wright and David Costley-Wood to advise and steer the process.
Will Wright, KPMG said: “Poundstretcher has suffered from significant impacts to profitability on several fronts over a sustained period, which were then further exacerbated by the impact of Covid-19 on footfall. With the directors of the business having explored a number of options, this CVA seeks to safeguard the long-term future of the business, across a smaller, more sustainable store estate.”
Creditors will vote on the proposal on July 2nd.
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