Poundworld to close 25 stores costing 242 jobs

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    Poundland shopperImage copyright Reuters

    Poundworld, the struggling discount retailer, will close 25 stores, resulting in 242 job losses, administrators said.

    The stores named for closure will operate until 15 July, according to a memo sent to Poundworld staff.

    “The administrators have been preparing contingency plans in the event that we are not able to deliver a sale of the business as a whole,” the memo said.

    The retailer has 355 stores and employs 5,100 people across the UK.

    The company’s founder, Chris Edwards, made a bid for around half of the chain’s stores, but on Monday he ruled himself out of a rescue after his final offer was rejected.

    Poundworld was founded in 2004 and in 2015 it was sold to TPG Corporation, a private equity firm which also controls restaurant chain, Prezzo.

    Poundworld went into administration on 11 June. Since then administrators Deloitte have attempted to find a buyer for the business.

    The chain made losses of £17.1m in 2016-17.

    Like many retailers, Poundworld has been hit by falling consumer confidence, rising overheads, the weaker pound and the growth of online shopping.

    The chain imports a lot of its stock and is having to pay more for it because of the fall in the value of the pound.

    The list of Poundworld shops set to close, the BBC understands, are as follows:

    Ashton

    Birmingham, the Fort Retail Park

    Blackburn

    Bradford Ivegate Express

    Brays

    Carmarthen

    Chester

    Crewe

    Denton DUAL

    Derby West Field

    Doncaster

    Dumfries

    Halifax

    Hyde

    Ipswich

    Liverpool Bell Vale

    Loughborough

    Manchester Arndale Express

    Middlebrook

    Newcastle Wallsend

    North Shields

    Nottingham Broadmarsh

    Stretford

    Sutton Coalfield

    Wakefield

    View the original article: https://www.bbc.co.uk/news/business-44780800

    https://www.bbc.co.uk/news/business-44780800

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