POUNDSTRETCHER has bought a rival chain of discount stores from administration.

Administrators from The P&A Partnership have sold the UGO store group to Poundstretcher, which was placed in administration today, in a pre-pack deal, saving 245 jobs.

All staff employed at UGO's 20 stores across the North of England and East Midlands have transferred to the new business.

They include workers at its stores in Stanley, County Durham, Hartlepool, Ashington, Northumberland and Eston, Middlesbrough.