Published: Mon, June 11, 2018
Finance | By Claude Patterson

Poundworld facing administration: 355 stores risk closure and 5300 jobs threatened

Poundworld facing administration: 355 stores risk closure and 5300 jobs threatened

The future of discount retailer Poundworld has been cast into doubt following Alteri Investors withdrawal from their buyout.

Deloitte has confirmed that a sale via a pre-pack administration could be an option for the company, but this approach would put at risk the jobs of all 5,500 staff members now working for Poundworld and is now the least favoured option when it comes to the future of the chain.

The company's management say they are in talks with other potential buyers, and it is thought that Poundworld's founder, Chris Edwards, might take on the business.

In May it emerged that TPG had chose to cut it losses and was putting Poundworld, which started in 1974 as a market stall in Wakefield in West Yorkshire, up for sale. Read about the House of Fraser and its Carlisle store here.

Several retailers have shown significant financial distress this year, with both Maplin and Toys R Us disappearing from the high street.

HoF stores employ 17,500 people who either work directly for the company or work in in-store concessions, with roughly half of its 59 outlets said to be at risk of closure.

The firm's cash reserves are running low and it is considering filing the notice as it would give the business two weeks' protection from creditors, according to the Press Association (PA).

The series of corporate crises on the high street have led the Government to establish a new industry council, jointly chaired by the former Co-op Group chief executive Richard Pennycook, to devise ways of easing retailers' pain.

Alteri, Poundworld and TPG all declined to comment on Wednesday.

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