High Court approves Poundstretcher rent cut plan

A High Court judge in London approved on Wednesday initial steps for discount retailer Poundstretcher to pursue a restructuring plan that would reduce rents at its nearly 300 UK stores, as the company warned it faces administration without creditor support.

The hearing, led by Mr Justice Hildyard, was a convening stage where lawyers sought permission to hold meetings of the company's creditors. Tom Smith KC, representing Poundstretcher, told the court the retailer would lack funds to cover a 2.8 million pound funding requirement due in the week starting June 28 if the plan fails. That figure would climb to 9.7 million pounds the week of July 26. In written submissions, Smith stated, "In those circumstances, the directors of the plan company will likely have no choice but to file for administration. In the administration, the administrators are anticipated to continue trading for a limited period while available liquidity is used to support a sale of the stock."

Poundstretcher, which employs about 3,000 staff, operates stores nationwide from its base in Kirby Muxloe, Leicestershire. Acquired in 2024 by U.S. investment firm Fortress, which also owns Majestic Wine, for an...