1,500 WORKERS TAKE POUNDING
Chain to close 100 stores
DISCOUNT chain Poundworld could axe 1,500 jobs as the bloodbath on the high street continues.
Bosses are expected to announce 100 of its 355 stores across the UK may close as part of a restructuring plan.
The chain, owned by TBG Capital, is looking into an insolvency process known as a Company Voluntary Arrangement (CVA) which will allow it to slash rents.
Rising costs and a squeeze on spending has forced several household names, including New Look, Byron Burger and Prezzo, to pursue CVAs this year.
Poundworld employs about 7,000 staff and was originally known as Everything’s £1. Richard Lim, chief executive of Retail Economics, said: “This signals just how much distress bricks and mortar retailers are under.
“Stuck with too many stores, inflexible leases and spiralling operating costs means the business is in desperate need of restructuring.”
Poundworld has struggled recently as most of its stock is imported and the value of the pound has fallen.
And it cannot pass on the extra costs as it pledges having “thousands of amazing deals” priced at just £1.
Meanwhile, Carpetright is set to close 81 stores and axe 300 jobs after the majority of creditors agreed to a restructuring plan.
Earlier this month the retail chain said 92 sites were in the firing line, although 11 have already stopped trading.
Rents on another 113 are set to be slashed as part of the restructure.
Boss Wilf Walsh said: “Addressing our legacy property issues to reduce our fixed costs to sustainable levels is critical to Carpetright’s recovery.”
This week Toys R Us closed its remaining shops.