Poundworld is latest high street casualty
THOUSANDS of people are at risk of losing their jobs after discount chain Poundworld plunged into administration yesterday. Poundworld is the latest casualty on the British high street after efforts to secure a last minute buyer failed.
Jane Barlow/PA Wire
The budget retailer appointed Deloitte as administrators, casting doubt over the future of its 335 stores and 5,100 jobs.
Last-ditch rescue talks with R Capital broke down over the weekend.
Poundworld's losses widened in 2016-17 to £17.1million, from £5.4 million the year before.
The news came just days after House of Fraser detailed its plans to shut 31 stores, affecting around 6,000 jobs.
The retail trading environment in the UK remains challenging and Poundworld has been seeking to address this through a restructure of its business
Deloitte will try to find a buyer for the business, and has said there are no redundancies or store closures at this time.
Clare Boardman, joint administrator at Deloitte, said: "The retail trading environment in the UK remains challenging and Poundworld has been seeking to address this through a restructure of its business.
"Unfortunately, this has not been possible."
She said the business was hit by falling footfall, alongside rising costs and weak consumer confidence.