Poundland is set to make significant changes to its rent payment structure as part of a restructuring plan that could see hundreds of its stores paying zero rent. The investment firm Gordon Brothers, Poundland's new owner, is proposing to halt all rent payments at around 250 Category C shops across the UK.

According to a recent letter sent to creditors, these Category C sites will have their rent payments reduced to nil. Additionally, Poundland will have the option to terminate leases at approximately 70 loss-making stores, classified as C2, with 30 days' notice. For the remaining 180 C2 sites, the notice period will be 60 days.

The restructuring plan also includes provisions for landlords to activate break clauses in their contracts to seek alternative tenants. If approved, the plan will also result in rent reductions of 15% to 75% at hundreds of Poundland stores.

While the exact number of store closures is still uncertain, a convening hearing is scheduled for next month, with a sanction hearing expected around 26 August where creditors will vote on the proposed plan.

Last week, Poundland was acquired by Gordon Brothers for a nominal fee following significant losses incurred by its previous owner, Pepco Group. Poundland has refrained from commenting on the matter.