Struggling store starts its ‘closing down’ sale

BELEAGUERED retailer Poundworld has started a “closing down” sale and drafted in consultants at Hilco to kick-start stock clearances.

Administrators at Deloitte have informed staff that Hilco will “help advise and support” staff during the process.

It comes after 100 redundancies were made in Poundworld’s head office earlier this week.

The company has more than stores, including two in Cardiff – at St David’s centre and the Capitol shopping centre.

It also has outlets in Llantrisant, Merthyr Tydfil, Bargoed and Blackwood.

In a note sent to staff, the company said: “It has been decided that stores are to commence ‘closing down’ sales.

“For clarity, this does not mean that store will definitely close.

“The administrators’ strategy remains the same; to continue to trade the business in order to realise the stock whilst seeking to secure a sales of the business, either in whole or part.

“Please be assured that the Hilco team are very experienced retail consultants who, in many cases, have been through this process themselves.”

Hilco is considered a retail restructuring specialist. It is also buying Homebase.

Deloitte is still considering bids for Poundworld’s assets, including sections of its store estate.

The retailer went into administration last week, putting a total 5,000 jobs at risk.

The budget chain has 335 stores, which are still operational and continue to receive stock from its distribution centre.

Announcing Poundworld’s administration last week, Deloitte said the firm was hit by falling footfall, rising costs and weak consumer confidence.

TPG said putting the business into administration was a “difficult decision”, and that the retailer was affected by a decline in the UK retail sector.

The news came just days after House of Fraser announced the closure of 31 shops across the UK and Ireland, including Cardiff’s historic Howells department store.

It also comes after both Toys R Us and Maplin fell into administration earlier this year.