Poundland is set to stop paying rent at 250 of its shops if a mooted restructuring plan gets the nod from creditors, according to reports.
Investment firm Gordon Brothers, announced as the new owner of the business last week, has proposed that rent payments should stop at “Category C” stores, said Sky News.
The report cites a letter sent to creditors saying that this includes 250 stores. At 70 of these, Poundland will have the right to terminate leases with 30 days notice with 180 more requiring 60 days notice.
It would be on top of rent payments being slashed by between 15% and 75% at hundreds more Poundland stores.
A source cited by Sky News said that creditors will get an opportunity to vote on the plans at the end of August.
Gordon Brothers is providing Poundland with up to £80m in financing to allow its management team to “progress with a proposed restructuring and turnaround of the business after a period of challenging trading”.
Chief executive Barry Williams, who returned to the retailer earlier in the year, is remaining in place under the new ownership.
Poundland currently operates 800 stores in the UK. It remains unclear how many of these will close as part of any restructuring plans.
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