Poundworld fights for life
Future bleak as buyer pulls out
THE fate of budget chain Poundworld and its 5,500 workers is hanging by a thread.
A potential buyer for the 355-strong chain has pulled out, it emerged yesterday.
Sources say a number of other suitors are still looking to acquire Poundworld as a “solvent” business.
However, even if that happens, around 100 stores are expected to close through a company voluntary arrangement (CVA), putting 1,500 jobs at risk. If no solvent solution is found then the firm is likely to plunge into administration.
Chris Edwards, Poundworld’s founder, is believed to be among those interested in buying bits of the business out of administration.
Poundworld was put up for sale by its private equity owner TPG Capital after suffering heavy losses – up from £5.4million to £17.1m in the past year. The chain was also hit with a £5.7m charge to cover onerous store leases.
The threat to Poundworld comes as department store chain House of Fraser is poised to announce plans to try and close around half of its stores.
Bosses are putting the finishing touches to a CVA that would see the firm close around 29 of its 59 UK branches, leading to widescale job losses and ripping the heart out of town centres across the country.
The first five months of 2018 have been carnage for the high street, with Toys R Us and Maplin going bust , and New Look, Mothercare, Carpetright and Marks & Spencer among a wave of chains announcing store closures.