Jun 16, 2020
Landlords cry foul over ‘morally wrong’ Poundstretcher restructuring
Poundstretcher has set up a confrontation with its landlords, some of whom accuse the company of using the upheaval of coronavirus to exit leases on unprofitable stores. As part of the proposed restructuring, Poundstretcher is offering to pay full rent on 94 stores, but it wants to cut rent on 84 others by 30-40 per cent. One landlord pointed to the different treatment of stores Poundstretcher owned and those it rented. The CVA has also riled landlords because discounters such as Poundstretcher, B&M, Home Bargains and Wilko continued to trade throughout the lockdown and have historically gained market share during uncertain economic times. The CVA documents reveal that Poundstretcher invested £31m in opening 120 new stores that "Didn't perform as forecast due to intensive competitive pressure", while an attempt to win back market share by cutting prices "Wasn't successful in generating an increase in customer footfall or profitability".
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