Published: Tue, June 12, 2018
Economy | By

Poundworld collapses to become latest retail failure, putting 5100 jobs at risk

Poundworld collapses to become latest retail failure, putting 5100 jobs at risk

Poundworld - which also trades under the name Bargain Buys - appointed administrators on Monday after talks with a potential buyer collapsed, leaving no other option.

Poundworld, which was set up in Wakefield, West Yorkshire, in 1974 by Chris Edwards and his son, also Chris, has 335 stores and 5,100 staff and serves two million customers a week.

It's not known how many people are employed at the branch in Corporation Street in Corby and Northfield Avenue.

The budget retailer is now calling in administrators at Deloitte.

The expected announcement is the latest in a line of bad news for the retail sector.

A raft of CVAs have been struck in recent months as retailers struggle amid surging costs, rising business rates, competition from online rivals and a slowdown in consumer spending.

Its owner, the American private equity firm TPG Capital, which bought Poundworld for £150million in 2015, has tried to find a buyer for the company.

However, Deloitte said that the business would continue trading, with no store closures or redundancies planned at this time.

Clare Boardman, joint administrator, said: "The retail trading environment in the United Kingdom remains extremely challenging and Poundworld has been seeking to address this through a restructure of its business".

There remains some optimism that a proportion of the chain's 5,300 staff will avoid losing their jobs if buyers can be found for parts of Poundworld's business during the administration process.

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

'Unfortunately, this has not been possible.

Mothercare, Carpetright, New Look, Prezzo and Jamie's Italian, have all recently announced plans to close hundreds of outlets, putting more than 35,000 jobs at risk. "We thank all employees for their support at this hard time".

The largest Poundworld workforce is at the Longwood Retail Park in Newtownabbey.

A TPG spokesman said: 'This was a hard decision for every party involved.

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