Poundstretcher pounces to snap up 18 Ugo stores

Poundstretcher acquired 18 stores in a pre-pack administration deal.

The P&A Partnership’s John Russell and Gareth Rusling were appointed joint administrators to Ugo yesterday and sold the business immediately on appointment. The deal, which will save 300 jobs, comes less than a year after Ugo’s launch.

The value retailer will rebadge all stores to the Poundstretcher fascia as soon as possible meaning that the Ugo name will disappear, it is understood. The 18 stores closed on February 2 to begin this process.

Pounstretcher owner Crown Crest finance director, Hemant Patel said: “We are delighted with the acquisition of these 18 stores which now takes Poundstretcher to 400 stores and we are pleased that Poundstretcher has been able to secure all 300 jobs. We plan to open further stores during 2012.”

The value retailer acquired 15 former Alworths stores after the ‘son of Woolworths’ variety store chain collapsed into administration last year.

Ugo owner Haldane Retail Group hoisted a for sale sign over the grocer in September after Ugo was put under strain trying to compete on price as the big four supermarkets embarked on a price war.

Ugo launched in April 2011 after Haldane Retail Group acquired 20 Netto stores from Asda. The shops are located along the M62 corridor.

At the time of launch, Ugo’s then chief operating officer Richard Collins said Ugo aimed to be “cheaper than Asda”.

Rusling said: “This was a particularly complex deal and we focussed 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.”