Thousand jobs to be axed in UK as 80 more Poundworld stores...

Thousand jobs to be axed in UK as 80 more Poundworld stores close

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Administrators are to close a further 80 Poundworld stores, resulting in 1,024 job losses at the collapsed discount retailer in the UK. Deloitte, which is overseeing the process, has struggled to sell the business as a whole but said the latest raft of closures will not affect a potential deal for the remaining business.

The administrator said discussions with interested parties are ongoing and “will continue to progress” over the coming days. The 80 stores will all close over the weekend of July 20-22.
It will leave Poundworld with just 230 open branches.

The news follows announcements made earlier this month over the shuttering of 25 stores, all of which will stop trading after July 15. Those closures will put 242 staff out of work.

Poundworld, which was formerly owned by private equity firm TPG Capital, had been operating with 335 stores and around 5,100 staff before it went bust last month. Joint administrator Clare Boardman said:

“Whilst we remain hopeful that a sale for part, or parts, of the business can still happen, it has not been possible to sell the business as a whole.

“We would like to thank all the employees for their continued support and commitment during this difficult time. “We are keeping staff appraised of developments as they happen.”

Deloitte’s discussions with interested parties have also involved the future of Poundworld’s distribution centre and head office in Normanton, West Yorkshire, where 100 people have already been made redundant.

Deloitte has turned down a bid for Poundworld from its founder, Chris Edwards, who was looking to save a raft of stores and safeguard around 3,000 jobs.

The Press Association has since revealed that the founder of rival Poundland, Steven Smith, is in early-stage talks about a bid to salvage part of Poundworld out of administration.

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