Published On: Mon, Jun 11th, 2018

Poundworld set to enter administration: 355 stores risk closure and 5,300 jobs threatened | City & Business | Finance


Talks broke down over the weekend as Poundworld tried to broker a rescue deal with private equity firm R Capital.

The budget retailer is now calling in administrators at Deloitte.

It is understood that Poundworld’s owner, TPG Capital, rejected previous offers to buy the business out of a pre-pack administration, and were hoping to sell it as a solvent business.

Other parties named as possible buyers were turnaround specialist Alteri Investors and Poundworld’s founder Chris Edwards, but a deal couldn’t be struck. 

Deloitte is likely to run another sale process once appointed as administrator.

Poundworld’s losses widened to £17.1 million for 2016-17 versus a £5.4 million deficit the year before.

This latest move comes just days after department store chain House of Fraser outlinesd plans to close 31 stores – including its flagship Oxford Street outlet – affecting a total of 6,000 jobs. 

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

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