Poundland's 99p stores have gone into administration

 
Helen Cahill
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99p Stores Chain To Be Sold For £60m
Poundland bought the 99p stores in September 2015 (Source: Getty)

A set of 99p stores have gone into administration less than two years after the shops were bought by Poundland.

Around 60 shops are affected, according to a report from Retail Week, but a spokesperson for the company said there would be "very limited" implications for jobs. Alix Partners is handling the administration.

The spokesperson for Poundland said: “It’s no secret that the previous management of Poundland had difficulties digesting its 99p Stores acquisition.

Read more: Poundland shareholders give Steinhoff green light for takeover

“However, we’ve largely completed the store closure programme that addressed the remaining overlaps from that 99p acquisition.”

In a statement, Alix Partners said that "no employees are affected" by the firm's appointment as administrators. Poundland said it can minimise the impact on jobs because there are other stores located near to the ones that are closing.

"The administration has no impact on Poundland itself," the Poundland spokesperson said.

Poundland, which is owned by South African conglomerate Steinhoff, bought the 99p stores in September 2015 for £50m. The company then started moving the properties onto Poundland leases. Their store portfolio consisted of around 250 outlets, but Poundland decided that 60 were "unprofitable".

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