Poundstretcher snapped up by investment group

Poundstretcher has been sold to Fortress Investment Group, known for its ownership of Majestic Wine and Punch Pubs.

The news follows the retirement of Aziz Tayub, who will be retiring from the Leicester-based retail chain after 18 years of trading.

Poundstretcher currently has 322 stores and 4,000 employees in the UK, with the investment group confirming they want to work with everyone involved after the sale.

Andy Atkinson, previously the group commercial director at Morrisons, will be stepping into the role of CEO at Poundstretcher.

The deal, financed by equity, will also bring Trevor Strain, former operating and finance chief at Morrisons, onto the Poundstretcher board post-transaction, while Tristan Phillips is set to return as Poundstretcher’s chief financial officer.

In 2020, Poundstretcher initiated a company voluntary arrangement as part of a restructuring effort to reduce costs, resulting in the closure of unprofitable stores.

Despite this, the retailer’s profit before tax for the 2023 financial year was £13.5m, a decrease from £16.6m, with turnover at £245.5m, down from £273m.

Over its 2022 financial year, the company downsized its retail staff by over 1,000 employees, approximately one-fifth of its shop workforce.

The value of the sale to Fortress has not yet been disclosed.