49 jobs at risk as discount retailer calls in administrators

49 jobs at risk as discount retailer calls in administrators

The collapse puts more than 5,000 jobs at risk, making it the biggest retail insolvency so far this year by job numbers.

The retailer, which has stores in Blackburn, Accrington and Burnley is poised to appoint Deloitte to handle an administration after last-ditch rescue talks with R Capital broke down over the weekend.

'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.

Partners at Deloitte have been appointed joint administrators of the 335-strong chain.

Carpetright (Other OTC: CGHXF - news), Marks & Spencer (Frankfurt: 534418 - news), Mothercare (Other OTC: MHCRF - news) and New Look are among the other retailers which have announced store closure plans this year, with thousands of jobs disappearing as a outcome. Losses for the financial year 2016-17 were £17.1m, up from £5.4m the year before.

Poundworld's collapse comes after electronics chain Maplin and Toys R Us - each with Stevenage sites - both went into administration this year.

"Unfortunately, this has not been possible".

Like many retailers, Poundworld has been hit by falling consumer confidence, rising overheads, the weaker pound and the growth of online shopping.

Deloitte added that they believe a buyer could still be found for the business, or at least part of it.

Poundworld, which has 355 stores, and serves two million customers a week, also trades under the Bargain Buys brand name. "We thank all employees for their support at this hard time".

The news follows further misery on the high street after last week department store chain House of Fraser announced its plans to close 31 outlets and axe 6,000 jobs.

A spokesman for TPG said putting the business into administration was a "difficult decision".

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