Jobs saved as UGO bought
Grantham-based discount store group UGO has been bought out of administration by discount chain Poundstretcher. The deal saves 245 jobs.
John Russell and Gareth Rusling from the P&A Partnership were appointed joint administrators to UGO yesterday (February 8) and sold the business immediately on appointment.
All of the 245 staff employed at UGO's 20 stores across the East Midlands and the north of England have transferred to the new business as part of the pre-pack deal.
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."
The UGO stores opened last January in former Netto premises.
The brand's owner, Haldane Retail Group, put the Lincolnshire-headquartered chain up for sale in September.
Leicester-headquartered Crown Crest Group acquired 340 Poundstretcher stores upping sales to £287.1m in 2009. The group supplies branded groceries to small independent retailers from depots in Leicester, Coventry and Nottingham.
In the year to 2 April 2011, Poundstretcher posted pre-tax profit of £1.4m on sales of £308m. At the year end, Poundstretcher was operating 354 trading stores.
