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5,000 jobs at risk as Poundworld slides towards administration

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Poundworld

Buyout talks have failed, leaving the discount chain no choice but to hand over to administrators - putting 5,100 jobs at risk.

There has previously been speculation that Poundworld was going to axe 100 shops but if the budget store goes into administration, it means all of its 355 shops face potential closure.

Poundworld's losses widened in 2016-17 to £17.1 million, from £5.4m of losses the year before.The retailer was hit with a £5.7 million charge for onerous leases, a provision retailers make when the cost of a lease is no longer covered by the income of the store.

"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", said joint administrator for Poundworld Clare Boardman.

It has been losing money for the past two years, however.

The chain has a store at the Richmond Centre in Derry.

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"Unfortunately, this has not been possible".

The announcement comes days after the House of Fraser announced the closure of its Cardiff and Cwmbran department stores next year threatening nearly 440 jobs. "We still believe a buyer can be found for the business or at least part of it", she said. "We thank all employees for their support at this hard time".

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

"Despite investing resources to strengthen the business, the decline in United Kingdom retail and changing consumer behaviour affected Poundworld significantly".

"Despite investing resources to strengthen the business, the decline in United Kingdom retail and challenging behaviour affected Poundworld significantly".

Some other British retailers are closing stores including Marks & Spencer, fashion retailer New Look, floor coverings group Carpetright, mother and baby goods retailer Mothercare and department store House of Fraser.

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