Poundworld on brink of collapse as last-ditch talks fail

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The budget retailer is now calling in administrators at Deloitte.

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

After buyout firm Alteri Investors walked away from a rescue deal, Poundworld's owner TPG Capital last week said it was in talks with other potential buyers.

Poundworld has collapsed into administration, putting more than 5,000 jobs at risk, following the failure of rescue talks over the weekend.

Deloitte said there are no redundancies or store closures now and has been working alongside the company in a bid to keep it afloat.

TPG Capital has already been considering a restructure that would lead to 100 of 355 shops being shut.

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.

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The stores suffered a major rise in multi-million pound losses past year - rising from £5.4m to £17.1m in 2016/17.

Poundworld's possible collapse comes after both Toys R Us and Maplin both fell into administration earlier this year.

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

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

She said the business was hit by falling footfall, alongside rising costs and weak consumer confidence.

Other retailers undertaking CVAs in a bid to keep trading include New Look, Mothercare and Carpetright.

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