Poundworld collapses into administration putting at least 5,000 jobs at risk
POUNDWORLD has collapsed into administration, putting 5,300 jobs at risk after rescue talks broke down.
The discount retailer could become the biggest chain by number of workers this year to fall into insolvency and 355 of its stores could close.
After buyout firm Alteri Investors walked away from a rescue deal, Poundworld's owner TPG Capital said it was in talks with other potential buyers.
But plans to find a buyer for the business have now been abandoned, although Deloitte, which has been appointed as administrators are likely to seek buyers for some stores.
A TPG spokesperson said: "This was a difficult decision for every party involved. We invested in Poundworld because of our belief in how the company serves its customers and the strength of its employees.
"Despite investing resources to strengthen the business, the decline in UK retail and changing consumer behaviour affected Poundworld significantly."
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.
It has been losing cash for the past two years with losses jumping to £17.1million in 2016 to 2017, from £5.4million the year before.
Martin Lane, Managing Editor of said: “All eyes have been on the retailer since they announced talks with a potential buyer, but now these have fallen through the risk to jobs is sadly much higher.
“It is undoubtedly distressing news for employees of Poundworld and their families especially because their fates have been kept in limbo.
"Now is the time to check what redundancy rights you have and dig out any income or mortgage protection policies you hold just in case."
The Sun Online has contacted Poundworld for comment and is yet to hear back.
News of the discount retailer's demise comes amid turmoil on the high street.
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Just last week, House of Fraser announced it is planning to shut half its store, putting 6,000 jobs at risk in the process.
The department store unveiled plans to close as many as 31 of its 59 shops - including its famous outlet in Oxford Street - in a drastic attempt to save the business and cut costs.
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Earlier this year, both Maplin and Toys R Us called it a day, and Carpetright, Mothercare and New Look have all announced that it will be closing stores.
Restaurant groups including Carluccio's, Prezzo and Byron have also been shutting dozens of stores as they are squeezed by rising costs and a fall in consumer spending.
Last month, Marks & Spencer announced it will shut a further 14 stores as part of its restructuring plan.
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