Advising Poundstretcher Ltd on its sale to Fortress Investment Group

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Gateley Legal

We have advised Poundstretcher Ltd on the sale of the high street retailer to US investment firm Fortress Investment Group.

The acquisition of Leicestershire-based Poundstretcher, one of the UK’s leading high street discount stores which employs over 4,000 people across its 320-plus stores, is entirely funded by equity and will see the US-based investment management company look to grow the retailer’s offering and UK footprint as well as building its relationships with suppliers to further enhance the customer experience.

The deal follows Aziz Tayub’s retirement from the business which will also see Andy Atkinson, the former group commercial director at Morrisons, join the company as Chief Executive with Tristan Phillips continuing as its Chief Financial Officer.

Fortress Investment Group LLC is a leading global investment manager. Founded in 1998, it manages $48bn of assets on behalf of over 1,900 institutional clients and private investors worldwide.

Corporate partner Paul Cliff led the Gateley Legal team, assisted by Hannah Hogarth and Olivia Isbister. Barbara Rollin advised on the real estate elements of the transaction and Jo Dugdale on tax whilst a full cross-office team supported on due diligence.

Paul Cliff said: “We are pleased to have advised the Tayub family on this transaction and to see that Tristan will continue to have an influential role with the business going forwards.

“The deal demonstrates the continued appetite amongst US-based investors in strong UK value retail brands operating in growth sectors.

“Our multi-disciplinary team based in multiple locations worked tirelessly on the deal for several months and completed all the formalities after the Easter weekend, demonstrating our combined strength, expertise and resilience in getting high profile, mid-market transactions over the line for our clients.”

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