POUNDSTRETCHER operator Brown & Jackson has agreed to sell its loss-making retailing chains to its biggest shareholder for £1.

The Leeds-based discount group wants to focus on its leading Poundstretcher brand after tumbling into the red in the past year.

It confirmed that as part of the restructuring, former Matalan boss Angus Monro would be joining the business as chief executive.

He will be paid an annual salary of £300,000 while current deputy chairman Carel Stassen moves into a non- executive role.

Under the shake-up, B&J plans to sell its Your More Store, What Everyone Wants and The Famous Brunswick Warehouse chains to South African group Tradegro.

Tradegro, B&J's majority shareholder, is paying a nominal cash fee of £1 as well as taking on debts of £47m.

The deal, which also includes 16 Poundstretcher stores in Poland, requires the approval of the UK firm's independent shareholders.

B&J said the poor performance of the chains had "adversely affected" its financial performance and market value.

It added the time needed to turn around the brands would be better used on expanding Poundstretcher, which has 338 UK stores.

Results out yesterday showed the group made pre-tax losses of £46.9m in the year to July 6, against profits of £10.8m the year before.