245 jobs are saved as Poundstretcher buys Ugo shops

NEARLY 250 jobs have been saved with the sale of 20 Ugo discount stores, including five in the North East.

NEARLY 250 jobs have been saved with the sale of 20 Ugo discount stores, including five in the North East.

Administrators who took over the chain this week have sold the shops to Poundstretcher in a pre-pack deal.

The P&A Partnership’s deal has saved 245 jobs at stores across the North including branches in Ashington, Hartlepool, Stanley and Middlesbrough.

Joint administrator Gareth Rusling said: “This was a particularly complex deal and we focused in our negotiations on transferring over the employees.

“We are pleased that we have been able to rescue the business and save so many jobs, particularly given the tough economic climate for the retail sector. Poundstretcher is a strong brand with a growing high-street presence.”

The Ugo stores opened a year ago in former Netto premise after owner the Haldane Retail Group acquired 20 stores that Asda was forced to sell as part of its £778m acquisition of Netto. The stores began to experience cash-flow problems after its main supplier stopped deliveries.

Hemant Patel, finance director of Poundstretcher owner Crown Crest, added: “We are delighted with the acquisition of these 18 stores, which now takes Poundstretcher to 400 stores, and we are pleased to secure all 300 jobs.”

 
comments powered by Disqus

Journalists

David Whetstone
Culture Editor
Graeme Whitfield
Business Editor
Mark Douglas
Newcastle United Editor
Stuart Rayner
Sports Writer