Retailer loses its second director in three months

HE HAD BEEN FINANCE BOSS WITH POUNDSTRETCHER SINCE JULY

POUNDSTRETCHER, the discount retailer, has lost its second finance director in the space of three months.

The chain has announced Jonathan Foister quit as a director on October 9.

He was brought in to replace Hemant Patel who left the Leicestershire- headquartered business at the end of July.

It has also been reported on The Grocer website that 30 members of staff will be affected when the business closes its old Huddersfield head office and transfers those positions to Leicestershire, where its warehousing and distribution has been based since last year.

The family-owned business is currently renegotiating rents with many of its landlords as part of a Compulsory Voluntary Agreement (CVA) which has seen some 57 stores close.

The issues facing the company have not prevented it launching a search for 50 potential new sites to open stores in 2021.

A spokeswoman for KPMG, which is handling the CVA, said: “Huddersfield is the old head office and warehouse.

“The company moved the warehouse and the majority of the head office to Leicester about 18 months ago (pre-CVA) and only a small amount of legacy operations remained in Huddersfield.

“As part of the company’s turnaround plan they are rationalising costs, including the legacy operations in Huddersfield.

“This was disclosed in the CVA proposal, so isn’t a new development as such.”

Mr Foister became a Poundstretcher director in July and, according to his LinkedIn profile, had been working with the company since April.

Prior to that he held senior finance positions at Holland and Barratt, Rolls-Royce, John Deere, Nottingham Trent University and Serco.

Documents posted at Companies House last month also show BDO resigned as auditors to Poundstretcher Ltd in March.

In a statement, BDO said: “Following a review of our client portfolio and an assessment of commercial risk and reward associated with the audit of the company, we have resigned as auditor to the company.”

Last week, Poundstretcher and KPMG confirmed the plans to take on 50 new stores, after publication of a poster saying the chain was looking for potential units to take on, ranging from existing shops to development sites in town centres and out-of-town retail parks.

The poster said the business was looking for freehold or leasehold properties, with A1 planning consent “preferred but not essential” and “temporary and flexible arrangements considered”.

It was also offering a £500 bonus for successful tip-offs.

Creditors of the business had previously agreed to the terms of the CVA to help it offload underperforming outlets, realign its head office and pave the way for investment in its estate.

Despite speculation half its 450 stores could go, one retail industry expert said at the time that such wholesale closures could make a business the size of Poundstretcher unsustainable. He also warned things could get difficult when the pause in business rates ended in the spring – assuming government plans don’t change.

The company moved the warehouse and the majority of the head office to Leicester 18 months ago

KPMG