Poundstretcher is looking to slash its property costs under a proposed restructuring plan, which it said has been designed to secure the long-term future of the business.

The discount chain, which has 300 stores across the UK, said the proposals primarily focus on seeking rent reductions with landlords and reducing other property costs.

A person familiar with the matter told Retail Week that the plan, subject to court approval, would involve reducing Poundstretcher’s rent by at least 25% on around 50 of its stores, while eliminating rent completely for another 50 locations that are currently unprofitable.

It added that no planned store closures or redundancies formed part of the plan. Stores will continue to trade as normal.

Poundstretcher said that it had experienced challenging trading conditions driven by a difficult macroeconomic environment.

It reported that its sales and profitability had been impacted “despite a clear strategy and significant work to reduce central costs and refresh the product offering”.

The restructuring plan forms one part of the retailer’s wider turnaround strategy, which also includes investment to strengthen existing locations and for future growth.

Poundstretcher was acquired by Majestic Wine owner Fortress Investment Group in 2024. The management team has made a number of operational changes including a refresh of the product range, investment in price and building stronger relationships with suppliers. 

The retailer’s chief executive Andy Atkinson said: “This plan we’ve set out today will reduce our cost base and enable us to invest in our stores, our people and the overall customer experience. 

“Our priority remains serving our customers across the UK, ensuring they have access to great products, at great value. 

“This restructuring plan will help to secure the long-term future of the business by strengthening existing locations and enabling sustainable growth.”

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