Jobs at risk as bargain stores’ sale falls through
60 Paisley posts could go as firm goes into administration
Around 60 jobs in Paisley are under threat after national discount chain Poundworld collapsed.
The chain operates two stores in the town – Bargain Buys, in the High Street, and Poundworld, in The Paisley Centre. Both take up the space of the former Littlewoods store, which lay empty on the High Street for seven years.
The stores opened back in 2012, creating around 60 jobs.
Now those are at risk as administrators Deloitte look at the business to see how it goes forward.
The move into administration came after talks with a potential buyer, R Capital, collapsed.
Joint administrator Clare Boardman said: “The retail trading environment in the UK remains extremely challenging and Poundworld has been seeking to address this through a restructure of its business.
“Unfortunately, this has not been possible.
“We still believe a buyer can be found for the business, or at least part of it, and we are keeping staff appraised of developments as they happen.
“We thank all employees for their support at this difficult time.”
The company employs around 5,100 people across its 335 stores, head office and distribution centre.
Deloitte said there would be no redundancies or store closures at this time.
The 14,000 square foot Littlewoods store closed in 2005 and it was seen as many as a symbol of Paisley’s struggling retail scene. Poundworld were hailed as saviours when they announced it would take over the plot and divide it into two brand new stores.
Poundworld and Bargain Buys sell a wide variety of goods at low prices, including household items, food, snacks, and sweets.
Deloitte blamed high product cost inflation, decreasing footfall, weaker consumer confidence and an increasingly competitive discount retail market for the company’s collapse.
Poundworld was formed in 2004, however, it can trace its origins back to 1974 and a market stall in Wakefield, West Yorkshire. It is now owned by leading global private equity firm TPG.
Bargain Buys was launched in 2013 by Chris Edwards and Chris Edwards Junior, the same father and son team behind Poundworld. a
We are keeping staff appraised of developments and thank them for their support at this time