Rivals may swoop on Poundworld after founder’s bid rejected
The founder of Poundworld is out of the running to buy the embattled retail business, opening up the field to competitors.
The discount chain went into administration in June, putting more than 5,000 jobs at risk, roughly 500 of which are based in Scotland. Chris Edwards, who started the business in 1974, said his proposal included plans to save 186 Poundworld stores and 3,000 jobs, but has been rejected by administrators at Deloitte.
Steven Smith, founder of rival discount retail chain Poundland, is now in earlystage talks about a potential bid to salvage parts of Poundworld out of administration. Poundworld founder Edwards said: “I’ve made a substantial and credible offer, which is the best offer we can put forward. Although it was close to what the administrator wants, we’ve now had written confirmation that it’s not high enough, which I’m shocked and surprised at, considering we were going to save 3,000 jobs.
“The amount of extra mon- ey the administrator is holding out for is a drop in the ocean when you consider how much money will be needed to stabilise the business and replenish stock levels.
“I now believe the business will close rather than jobs being saved.”
Poundworld has more than 300 stores across the UK, with around 40 of these located north of the Border.