Newport's Poundstretcher has posted 'closing down' sale signs in its High Street windows, two months after the firm, which has 450 stores across the UK, revealed financial troubles.

Earlier this year, Poundstretcher entered a company voluntary arrangement (CVA) and warned landlords at more than 250 branches if new rent agreements could not be reached, stores would close.

In June, restructuring firm KMPG said: “One of the UK’s best-known discount retailers, Poundstretcher has suffered from significant impacts to profitability on several fronts over a sustained period, which were then further exacerbated by the impact of Covid-19 on footfall.

“Earlier this Spring, the Group engaged KPMG to undertake a marketing process to explore all strategic options for business. Regrettably, this process did not produce any solvent offers. Thus the CVA seeks to safeguard the long-term future of the business, across a smaller, more sustainable store estate.”

Its plan was to retain leases at their current rents for 91 stores; to reduce the rent on 86 stores for three years; and, for six weeks, pay rent in full on 250 stores, before deciding on the future of each individual shop.

A further 23 stores, trading as Poundstretcher Properties Limited, went into administration.