Published: Mon, June 11, 2018
Business | By Kate Woods

Poundworld enters administration today, putting thousands of jobs at risk


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".

"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".

"We still believe a buyer can be found for the business or at least part of it", she said.

'Unfortunately, this has not been possible.

"We invested in Poundworld because of our belief in how the company serves its customers and the strength of its employees", he added.

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"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.

Deloitte, which has been co-ordinating efforts to find a solvent deal for the business, is expected to oversee the administration of Poundworld.

Other parties named as possible buyers were turnaround specialist Alteri Investors and Poundworld's founder Chris Edwards.

Poundworld's losses widened in 2016-17 to £17.1m, from £5.4m of losses the year before.

It also operates the Bargain Buys chain which has a store in Gravesend.

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The news comes hot on the heels of House of Fraser revealing it was to close more than half of its United Kingdom stores in a bid to make it viable.

The company is seeking landlord approval for the restructuring plan, which is a form of insolvency known as a Company Voluntary Agreement (CVA).

Poundworld, based near Wakefield, northern England, is the latest British retailer to be hit by rising costs, cash-strapped consumers and a shift to online shopping.

The filing provided it with protection as it looked to secure a deal, which would lead to store closures and an administration process, allowing its staff and suppliers continue to be paid.

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