Poundworld on brink of collapse as last-ditch talks fail

Poundworld in Dartford faces an uncertain future

Poundworld in Dartford faces an uncertain future

Hundreds of Welsh retail jobs are under threat after the collapse of high street chain Poundworld.

It comes after a last-gasp rescue deal between the chain's owner, TPG Capital, and private equity firm Rcapital fell apart over the weekend.

Clare Boardman, joint administrator at Deloitte, 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". Losses for the financial year 2016-17 were £17.1m, up from £5.4m the year before.

She said the business was hit by falling footfall, alongside rising costs and weak consumer confidence.

Clare Boardman, joint administrator, comments: "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".

'Unfortunately, this has not been possible.

Chris Edwards, who founded the business in Wakefield, Yorkshire in 1974 before selling it to TPG for £150m, is also thought to have been interested in buying back the business.


There have also been casualties among independent businesses, including Hitchin town centre's Hawkins and Kenmore Interiors department stores.

"We believe a buyer can be found for the business or at least part of it and we are keeping staff appraised of developments as they happen. We thank all employees for their support at this hard time".

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

"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 changing consumer behaviour affected Poundworld significantly".

The company had been given up to two weeks to sort itself out a buyer before creditors would step in, but after talks with R Capital broke down there was little that could be done. apparently the 355 Poundworld branches will continue to operate as normal, with no redundancies to announce right now.

The news came just days after House of Fraser detailed its plans to shut 31 stores, affecting around 6,000 jobs.

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