Poundworld collapse leaves 5,100 jobs at risk

Poundworld collapse leaves 5,100 jobs at risk

British discount retailer Poundworld has gone into administration, putting 5,100 jobs at risk and becoming the latest victim of brutal trading conditions in the United Kingdom retail sector.

The budget retailer, which was has its head office in Normanton, Wakefield, collapsed after last-ditch rescue talks broke down over the weekend.

Poundworld - which also trades under the name Bargain Buys in locations including Stevenage - appointed administrators today after talks with a potential buyer collapsed, leaving no other option. Losses for the financial year 2016-17 were £17.1m, up from £5.4m the year before.

Deloitte said in a statement: 'Like many high street retailers, Poundworld has suffered from high product cost inflation, decreasing footfall, weaker consumer confidence and an increasingly competitive discount retail market.

Clare Boardman, joint administrator of Poundworld, said that the chain had been affected by the "challenging" retail environment.

'Unfortunately, this has not been possible.

Founded in 1974, Poundworld was sold to United States equity group TPG Capital for £150m in 2015.

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There are no redundancies or store closures at this time.

There remains optimism that a proportion of the chain's staff will avoid losing their jobs if buyers can be found for part of the business during the administration process.

A TPG spokesman said: "This was a hard decision for every party involved".

"Despite investing resources to strengthen the business, the decline in United Kingdom retail and changing consumer behaviour affected Poundworld significantly".

House of Fraser (HoF) confirmed plans last week to axe 6,000 jobs and close just over half its 59 stores.

"Despite investing resources to strengthen the business, the decline in United Kingdom retail and changing consumer behaviour affected Poundworld significantly".

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