
Poundstretcher said it is now “well positioned” for growth as it sank to a loss before its acquisition by the private equity firm behind Majestic Wine.
The discount chain swung to a pre-tax loss of £9.8m in the year to 31 March, down from a £5m profit the year before, The Grocer reported.
Sales dropped £34m to £212m as the business shuttered 10 stores as it continued to restructure its estate following a CVA.
Poundstretcher reported several one-off exceptional expenses during the year, including £9.2m on migrating to a new warehouse management system and £5.3m in charitable donations.
It cut 680 employees over the past 12 months, including 600 store workers, reducing the average monthly staff count to 3,430.
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The retailer’s new owners Fortress said the business is “well positioned to build supply relationships, deliver low prices to customers across a wider range of products and brands, and increase the width of store offering within the UK”.
Poundstretcher has undertaken “a number of key strategic initiatives including product range reset, to include more household name products” and has also invested in ensuring “everyday low pricing, and raising customer awareness of the brand” through social media activity.
The business has closed 12 loss-making stores and opened eight, which it said are “performing strongly”.
A Poundstretcher spokesperson told the publication: “These are historic accounts relating to the year ending March 2024, when Poundstretcher was under its previous ownership.
“The business was acquired by Fortress Investment Group in April 2024. Since then, we have appointed new management and made significant investment in the business. As a result, Poundstretcher is making strong strategic progress, and is well positioned to drive profitable growth.”
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