Hundreds more jobs to go at retailer as rescue hopes fade

POUNDWORLD is axing hundreds more jobs as it closes its head office, warehouse operations and another batch of stores.

The budget retailer is closing its warehouse and distribution network, the Press Association understands, alongside its head office in Normanton, West Yorkshire, leading to the loss of 300 jobs.

Administrators at Deloitte are also informing staff of another batch of store closures, having announced the closure of 145 already.

Poundworld fell into administration on June 11, putting more than 5,100 jobs at risk across its 335-store portfolio.

Deloitte has been announcing tranches of store closures over the past two weeks after failing to find a buyer for the whole business.

Earlier this week adminstrators for the troubled retailer announced they were to close 40 stores and axe 531 jobs. This swath of clusres included four in Wales, Queensferry, Bangor, Newport and Blackwood, with a total headcount of 41 jobs.

On Tuesday, Deloitte said it was still in discussions with interested parties for the potential sale of “part or parts of the remaining business”.

The latest job losses come as hopes for a rescue fade. Deloitte has turned down a bid from company founder Chris Edwards, who was looking to save a raft of stores and safeguard around 3,000 jobs.

The founder of rival Poundland, Steven Smith, has also been linked to a bid to salvage part of Poundworld out of administration.

The collapse came amid decreasing footfall, rising costs and weak consumer confidence.

The budget retail chain, formerly owned by TPG Capital, is one of a number of retailers to call in administrators this year, with Toys R Us and Maplin going from UK high streets.

The Gaucho restaurant group also fell into administration yesterday, with the Cau chain closing immediately, with the loss of 540 jobs.