Poundworld future hangs in the balance

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The future of the struggle discount retailer Poundworld is in the balance, after the main contender to buy the chain pulled out of talks.

Alteri Investors, whose website says he specializes in “challenging retail situations”, was in advanced talks with Poundworld owner of TPG.

Sky News, which first reported Alteri, said TPG is talking to other potential buyers.

Around 100 of Poundworld’s 355 stores were already under threat of closure.

That the restructuring was put on hold by TPG, a private equity firm, after having received expressions of interest in the company.

A source told the BBC that Poundlworld of the founder, Chris Edwards was trying to organize a rescue of the proposal and is currently the only serious bidder in talks with TPG.

Poundworld, which employs about 5,300 people is among many shops in the Street who have been struggling.

Like many retailers, has been affected by the fall in consumer confidence, increased overhead costs, the weaker the pound sterling and the growth of online shopping.

The chain of imports of a large amount of its actions and is paying more for it, because of the fall in the value of the pound.
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Retailers, Maplins, Toys ‘R’ Us, Mothercare, Carpetright, in addition to a string of chain restaurants, have hit the headlines this year, because of trade issues.

Department store chain House of Fraser is about to unveil a restructuring, which could come as soon as Wednesday.

Poundworld, which has its headquarters in West Yorkshire, was founded in 2004, but says that it can trace its origins “back to 1974 and a market stall in Wakefield, West Yorkshire”.

TPG, which bought a majority stake in Poundworld in 2015, it also controls the chain restaurant Prezzo, where the owners and creditors agreed to a restructuring of the past month.