Poundstretcher store in Grantham safe for now after CVA deal

A deal has been done to secure the immediate future of a discount retailer that has a branch in Grantham.

Poundstretcher, which has an outlet in London Road, faced having to close up to half of its 450 stores after a fall in profits.

But creditors of the retailer agreed a company voluntary arrangement (CVA), which sees businesses to pay off debts over a period of time, on Friday allowing Poundstretcher to pay lower rents on some of its stores.

Will Wright, of accounting firm KPMG which was was called in by Poundstretcher, said: "The approval of the CVA provides a stable platform from which the company can continue to operate across a more focused store portfolio.

"One of the UK’s best-known discount retailers, Poundstretcher has suffered from significant impacts to profitability on several fronts over a sustained period, further exacerbated by the impact of Covid-19 on footfall.

"The Group engaged KPMG to undertake a marketing process to explore all strategic options for the business.

"Regrettably, this process did not produce any solvent offers and the CVA seeks to safeguard the long-term future of the business, across a smaller, more sustainable store estate."