Administrators announce a further 40 stores to close with the loss of now over 1000+ jobs, in a further blow to the company.
On June 11th 2018, Poundworld collapsed into administration after buyers, RCapital and Alteri Investors pulled out. Daniel Butters and Clare Boardman of Deloitte were called in to try and save the retailer.
After a month of searching for a buyer, no credible offers with confirmed funding have been made. Poundworld Founder, Mark Edwards, placed an offer to save the firm. He stated how his offer would have saved 3000 jobs, around 160 stores and was near to what the administrator was requesting, however to his shock, he received ''written confirmation that it's not enough''. Edwards started the firm in 1974, on a market stall in Wakefield, before US private equity group TPG Capital brought a majority stake in a £150 million deal, three years ago.
It was revealed by the Press Association last week, that Steven Smith, founder of rival Poundland is having talks about bidding to rescue Poundworld. Despite remaining hopeful for the sale of the business, Boardman stated that it has not been possible as a whole, and so it was announced that the final day for trading would be July 15th 2018.
With store closures coming daily, the current number now sits at 145 stores shut, with redundancies totalling almost 1800.
Poundworld is not the first retail store to have to close stores. In the past month, House of Fraser, Mothercare, BHS and many other retailers have had to do the same, in an attempt to rescue themselves in the current retail industry crisis.
The following locations have been added to the list of stores shutting, and will do so by next Tuesday (24th July 2018) :
Ashton Under Lyne
Dunfermline – 85