AlixPartners has been appointed as administrators to the discount chain 99p Stores, having been called in by Poundland which bought its rival for £55m less than two years ago
Following the acquisition in 2015, Poundland began re-branding the 252 shops, but 60 remained in a separate shell company and have now been closed, either because they were near to existing outlets or because they were not profitable. It is anticipated that staff are likely to move to other stores in the chain.
Poundland itself is owned by South African retailer Steinhoff, which said in a statement: ‘It’s no secret that the previous management of Poundland had difficulties digesting its 99p Stores acquisition.’
AlixPartners said of its appointment as administrators of 99p Store: ‘This appointment comes in support of Poundland Group Limited strategic decision to operate their entire retail estate under the Poundland fascia. No employees are affected by this appointment.’
A Poundland spokesperson said: ‘The administration has no impact on Poundland itself.’
