Poundworld cuts of 242 jobs 25 stores closed

Reuters

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

Stores named for the closure will run until the 15th of July, according to a memo sent to Poundworld staff.

“The directors have participated in the preparation of emergency plans in the case where we are not able to deliver a sale of the business as a whole,” the note said.

The retailer has 355 stores and employs more than 5,100 people across the united KINGDOM.

The company’s founder, Chris Edwards, has made an attempt for about half of the chain stores, but on Monday he decided himself to a rescue after its last offer was rejected.

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

Poundworld went into administration on 11 June. Since then, administrators from Deloitte have been trying to find a buyer for the company.

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

Like many retailers, Poundworld has been hit by falling consumer confidence, increased overhead costs, the weakness of the pound and the growth of online shopping.

The chain imports a large portion of its stock and having to pay more because of the falling value of the pound sterling.

The list of the Poundworld stores close, the BBC understands, are as follows:

Ashton

Birmingham, Fort Retail Park

Blackburn

Bradford Ivegate Express

Brays

Carmarthen

Chester

Crewe

Denton DOUBLE

Derby Of The West Field

Doncaster

Dumfries

Halifax

Hyde

Ipswich

Liverpool Bell Vale

Loughborough

Manchester Arndale Express

Middlebrook

Newcastle Wallsend

North Shields

Nottingham Broadmarsh

Stretford

Sutton-Les-Mines

Wakefield