Discount store Poundworld ‘put on sale’

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Discount retailer Poundworld has been put on sale by its owner, private equity company TPG, the BBC understands.

The chain had been looking at the closure of about 100 355 stores as part of a restructuring plan, as fought a tough retail environment.

It is a process that has now been put on hold by US, the owner, CFI, after having received expressions of interest for the company.

Poundworld, which employ approximately 5,550 people, is among the many High Street stores, which have struggled.

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

The chain imports much in the bag and having to pay more for it because of the decrease in the value of sterling.
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The process of finding a buyer it will in the course of a short period of time, the BBC understands, to allow the new buyer to continue the process of restructuring, if necessary.

It had been expected to announce the terms of the process that is known as a Company Voluntary Arrangement (CVA) – this month.

CVA have become popular among retailers, because they allow companies to download the shops underperforming, and reduce the rentals, thus avoiding administration.

Poundworld, which has its registered office in West Yorkshire, was formed in 2004, but it says that it can trace its origins returning to 1974, and a market stall in Wakefield, West Yorkshire”.

Private equity firm TPG Capital, which bought a majority stake in Poundworld in 2015, check out also the chain of restaurants of the Price, the owners of which agreed to the arrangement last month. The closing price of 94 branches.

A number of other retailers have chosen to go through with the arrangement, including the New Look and International, while House of Fraser is expected a formal CVA proposal next month, with a complete renovation in place by the beginning of 2019.

At the beginning of this year, Toys R Us, and the UK electronics chain Maplin has gone into administration.