Gifts Today magazine

Poundland hires Hilco to renegotiate 99p Stores rents following acquisition

Poundland has hired adviser Hilco to renegotiate rents on 99p Stores, the business it acquired last month, Retail Week has learned.

Sources told Retail Week that Poundland, which listed on the stock market last year, is seeking a range of concessions from landlords, including 12-month rent- free periods and rates and service charge-only deals.

It is not clear how many of 99p Stores’ 251 branches Poundland is negotiating concessions on, or if any of the discussions with landlords could end in store closures.

While Poundland has said it intends to scrap the 99p Stores name and rebrand to its fascia, boss Jim McCarthy in August maintained it plans to retain all of 99p Stores’ branches.

Poundland declined to comment on the nature of the negotiations but a spokesman confirmed the retailer had hired Hilco as “adviser on the 99p Stores acquisition”.

“Hilco has significant experience in this type of transaction and will be assisting us with the smooth transfer and integration of the 99p Stores assets into the Poundland business,” he said.


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