In administration Poundworld announces 25 store closures

By Paul Norman - Tuesday, July 10, 2018 13:16

Discount retailer Poundworld is to close 25 stores with 242 job losses as administrators to the business continue to seek a buyer.

The stores (listed below) will operate until 15 July. Poundworld has 355 stores.

A memo sent to staff said: "The administrators have been preparing contingency plans in the event that we are not able to deliver a sale of the business as a whole," the memo from administrator Deloitte said.

Poundworld was founded in 2004 and in 2015 it was sold to private equity group TPG.

The business went into administration on 11 June after talks with suitor R Capital fell through. Poundworld also trades under the Bargain Buys name.

Owner TPG Capital put the business up for sale in May. Turnaround investor Alteri Investors also recently pulled out of talks to buy the business.

In a statement at the time of the administration Deloitte said: "Like many high street retailers, Poundworld has suffered from high product cost inflation, decreasing footfall, weaker consumer confidence and an increasingly competitive discount retail market."

Losses at Poundworld for the financial year 2016-17 were £17.1m, up from £5.4m in the prior year.

The list of Poundworld shops set to close is:

Ashton

Birmingham, the Fort Retail Park

Blackburn

Bradford Ivegate Express

Brays

Carmarthen

Chester

Crewe

Denton DUAL

Derby West Field

Doncaster

Dumfries

Halifax

Hyde

Ipswich

Liverpool Belle Vale

Loughborough

Manchester Arndale Express

Middlebrook

Newcastle Wallsend

North Shields

Nottingham Broadmarsh

Stretford

Sutton Coalfield

Wakefield

pnorman@costar.co.uk

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