High street discount chain 99p Stores has entered administration less than two years after being bought by Poundland.
Poundland, which is owned by South African retail group Steinhoff, bought 99p Stores in September 2015 for around £50m.
A spokesperson for Poundland said the closure of the 99p Stores outlets would have no impact on the brand itself. It is understood that around 60 stores are affected.
The administrator is Alix Partners who will be responsible for communication regarding the company and its liabilities.
“As we’ve always said, It’s no secret that the previous management of Poundland had difficulties digesting its 99p stores acquisition,” the spokesperson said.
“However we’ve largely completed the store closure programme that addressed the remaining overlaps from that 99p acquisition - importantly, with very limited impact on jobs because we have stores located near to those we’re closing.
“The administration has no impact on Poundland itself which, of course, is a robust, thriving business serving over seven million shoppers a week.”