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ARTICLE AD BOX
Poundland volition halt rent payments astatine hundreds of its shops if a restructuring of the ailing discount retailer is approved by creditors aboriginal this summer.
Sky News has learnt that Poundland's caller owner, the concern steadfast Gordon Brothers, is proposing to halt each rent payments astatine alleged Category C shops crossed the country.
According to a missive sent to creditors successful the past fewer days, astir 250 shops person been classed arsenic Category C sites, with rent payments "reduced to nil".
Poundland volition person the close to terminate leases with 30 days' announcement astatine astir 70 of these loss-making stores - classed arsenic C2 - aft the restructuring program is approved, and with 60 days' announcement astatine astir 180 much C2 sites.
The program besides raises the imaginable of landlords activating interruption clauses successful their contracts astatine the earliest imaginable accidental if they tin unafraid alternate retail tenants.
In summation to the zero-rent proposal, hundreds of Poundland's stores would spot rent payments reduced by betwixt 15% and 75% if the restructuring program is approved.
The papers leaves unfastened the question of however galore shops volition yet adjacent nether its caller owners.
A convening proceeding has been scheduled for adjacent month, portion a authorisation hearing, astatine which creditors volition ballot connected the plan, is owed to hap connected oregon astir August 26, according to 1 source.
The discounter was sold past week for a nominal sum to Gordon Brothers, the erstwhile proprietor of Laura Ashley, amid mounting losses suffered by its Warsaw-listed owner, Pepco Group.
Poundland declined to comment.
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