Struggling retailer Poundworld has surrendered its lease on a 215,000 sq ft warehouse in Yorkshire in a move that will give a boon to its troubled finances.
The company had signed a lease on the property that was due to expire in 2020 at £4.25 per sq ft or £892,500 per annum, but its administrators have now agreed a lease surrender with its landlord, CIC-owned Logicor.
Poundworld had not occupied the shed in Normanton since shortly after it leased a neighbouring 500,000 sq ft head office and distribution centre in 2015 from LondonMetric.
The Logicor warehouse, located near junction 31 of the M62, has now been let to third-party logistics provider Panther Warehousing on a 10-year lease at a rent understood to be higher than Poundworld had been paying.
The future of Londonmetric’s 500,000 sq ft shed remains under discussion as the administration continues.
Poundworld’s administrators plan to axe 105 stores, reducing its store count to 230 from 335.
According to Radius Data Exchange, it is estimated the store closures will result in 805,980 sq ft of empty space, based on an average store size of 7,676 sq ft.
Deloitte, Poundworld’s administrators, handled the lease surrender. Knight Frank acted for Panther and Logicor was unadvised.
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
