Monday, 18 June, 2018

Poundworld shops could close after buyer pulls out of talks

Poundworld GETTYPoundworld is poised to announce its intention to appoint administrators
Ginger Lawrence | 11 June, 2018, 16:08

The Press Association understands that during the sale process, which is being steered by Poundworld's lender Santander, the retailer has rejected offers to buy the business through a pre-pack administration.

Today's announcement comes as Britain's high street faces a crisis amid an onslaught from online rivals - and came on the same day that House of Fraser announced 6,000 of its employees are at risk of losing their jobs as it plans to close more than half of its stores in a bid to save the company.

The budget retailer has 15 stores in Northern Ireland and around 100 jobs here could be lost.

Poundworld has been put up for sale by its private equity owner TPG Capital, but a potential buyer, Alteri Investors, has walked away from sale talks.

POUNDWORLD, the Yorkshire-based discount group, is facing a race against time to avoid collapse, with administrators on standby after a white knight buyer walked away from talks to rescue the business.

The filing gives Poundworld protection as it seeks to secure a deal, which would lead to store closures and an administration would be handled by Deloitte.

Poundworld on brink of collapse as last-ditch talks fail
The collapse puts more than 5,000 jobs at risk, making it the biggest retail insolvency so far this year by job numbers. The appointment of Deloitte as administrators leaves the future of five stores in the county hanging in the balance.

According to the Press Association, Alteri Investors has walked away from talks over an acquisition from U.S. private equity owner TPG.

Losses for the financial year 2016-17 were £17.1million, up from £5.4million the year before.

In May it emerged that TPG had chose to cut it losses and was putting Poundworld, which started in 1974 as a market stall in Wakefield in West Yorkshire, up for sale.

Retailers Maplins, Toys "R" Us, Mothercare, Carpetright, plus a string of restaurant chains, have hit the headlines this year because of trading trouble.

It also has a Poundworld Plus outlet at the Peel Centre, Dumfries.