Poundworld latest to look at store closures

Discount chain Pound worldis pursuing a restructuring plan that could see it shut a third of its stores, putting more than 1,500 jobs at risk.

Poundworld is considering a Company Voluntary Arrangement (CVA), an insolvency procedure that enables retailers to reduce their rents and outlets in order to survive. Under the plans announced yesterday, Poundworld could close 100 of its 355 stores.

Rising costs and squeezed consumer spending has forced several household names to pursue CVAS this year, including New Look, Byron, Prezzo and Carpetright.

Poundworld, which is owned by private equity firm TPG Capital, is set to announce the precise terms of the CVA next month.

Landlords will then vote on whether to approve the proposal. All of the major CVAS proposed this year have been agreed by landlords. TPG Capital also owns restaurant chain Prezzo, which recently secured the backing of creditors for a CVA.