Poundland will halt lease funds at a whole lot of its retailers if a restructuring of the ailing low cost retailer is authorized by collectors later this summer season.
Sky Information has learnt that Poundland’s new proprietor, the funding agency Gordon Brothers, is proposing to halt all lease funds at so-called Class C retailers throughout the nation.
In keeping with a letter despatched to collectors in the previous couple of days, roughly 250 retailers have been classed as Class C websites, with lease funds “decreased to nil”.
Poundland may have the correct to terminate leases with 30 days’ discover at roughly 70 of those loss-making shops – classed as C2 – after the restructuring plan is authorized, and with 60 days’ discover at about 180 extra C2 websites.
The plan additionally raises the prospect of landlords activating break clauses of their contracts on the earliest attainable alternative if they will safe different retail tenants.
Along with the zero-rent proposal, a whole lot of Poundland’s shops would see lease funds decreased by between 15% and 75% if the restructuring plan is authorized.
The doc leaves open the query of what number of retailers will in the end shut below its new homeowners.
A convening listening to has been scheduled for subsequent month, whereas a sanction listening to, at which collectors will vote on the plan, is because of happen on or round 26 August, in accordance with one supply.
The discounter was offered final week for a nominal sum to Gordon Brothers, the previous proprietor of Laura Ashley, amid mounting losses suffered by its Warsaw-listed proprietor, Pepco Group.
Poundland declined to remark.
