Published: Mon, June 11, 2018
Markets | By Otis Pena

5,000 jobs at risk as Poundworld slides towards administration


More than 5,000 high street jobs will be thrown into fresh doubt on Monday when Poundworld crashes into administration following the failure of last-ditch rescue talks.

"Despite investing resources to strengthen the business, the decline in United Kingdom retail and challenging behaviour affected Poundworld significantly".

The appointment of Deloitte as administrators leaves the future of five stores in the county hanging in the balance.

It is the biggest chain by number of employees this year to fall into insolvency, just over three months after the same fate befell Maplin and Toys R Us.

The chain has a store at the Richmond Centre in Derry.

'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.

In the meantime, they have said that no redundancies or store closes are planned during this period and Poundworld would continue to trade as usual while it sought a buyer.

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There remains some optimism that a proportion of the chain's 5,300 staff will avoid losing their jobs if buyers can be found for parts of Poundworld's business during the administration process.

Deloitte said in a statement: '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.

'Unfortunately, this has not been possible.

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

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.

Restaurant businesses have also been seeking to cut their costs with store closure programmes, with Carluccio's, Byron and Prezzo all pushing through CVAs this year.

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