Single price retail group falls into administration

The rival single price store chain acquired by Black Country retailer Poundland less than two years ago has reportedly fallen into administration.

Willenhall-based Poundland invested around £55m to acquire the 99p Stores in 2015 following clearance by the competitions watchdog.

Poundland then began the process of integrating the 99p Stores estate into its own – although several stores were earmarked for closure in areas where Poundland was already operating.

According to Retail Week, the remnants of the 99p Stores group has now lapsed into administration. The administration is thought to affect around 60 shops which had remained on 99p Stores leases following the acquisition but which have already closed.

Poundland had tried to offload the underperforming stores but failed to do so.

The impact on jobs is thought to be minimal because many of the 99p Stores staff had already transferred to Poundland.

Ironically, the acquisition and subsequent integration caused many problems for Poundland and spotting that the business was vulnerable, South Africa-based Steinhoff mounted an attempt to acquire the business which after a protracted process, proved successful.

The administration is said to have no impact on the Poundland business.