Struggling discount retailer Poundstretcher has gained approval for its company voluntary arrangement, which will affect landlords at more than 337 stores in the UK.
More than 90% of all voting creditors voted in favour of the CVA, surpassing the minimum 75% required to pass the resolution.
Its administrators at KPMG noted that this included an “overwhelming majority of landlords”.
Will Wright, restructuring partner at KPMG and joint supervisor of the CVA, said: “The approval of the CVA provides a stable platform from which the company can continue to operate across a more focused store portfolio.”
Under the proposals, 253 of its circa 450 stores will receive rents in full for six weeks, after which trading will “depend on the commercial merits of each store with the relevant landlords’ collaboration”.
A further 84 will trade with rent reductions of around 30-40% for a period of three years, while 94 leases will continue to trade at current rents.
The retail chain also occupies a further 23 stores under leases under a connected company, Poundstretcher Properties Limited. This is expected to be put into administration.
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