Economy

Poundworld collapse leaves 5,100 jobs at risk

Poundworld collapse leaves 5,100 jobs at risk”

Poundworld has called in administrators, making it the latest casualty in a retail bloodbath on Britain's high streets.

The stores suffered a major rise in multi-million pound losses past year - rising from £5.4m to £17.1m in 2016/17.

Deloitte is expected to be appointed to oversee the administration.

More than 5,000 high street jobs will be thrown into fresh doubt on Monday when Poundworld crashes into administration following the failure of last-ditch rescue talks.

Poundworld, which is owned by TPG Capital, has 335 stores.

Several retailers have shown significant financial distress this year, with both Maplin and Toys R Us disappearing from the high street.

The filing provided it with protection as it looked to secure a deal, which would lead to store closures and an administration process, allowing its staff and suppliers continue to be paid.

Other retailers are expected to pick off parts of its 355-strong store estate, while a slimmed-down Poundworld operation may also be viable.

Clare Boardman, joint administrator at Deloitte, said: "The retail trading environment in the United Kingdom remains extremely challenging and Poundworld has been seeking to address this through a restructure of its business".

'Unfortunately, this has not been possible.

Many of these have been struck this year as retailers have struggled with surging costs, rising business rates, competition from online rivals and a slowdown in consumer spending.

A spokesman for TPG said putting the business into administration was a "difficult decision".

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

Restaurant businesses have also been seeking to cut their costs with store closure programmes, with Carluccio's, Byron and Prezzo all pushing through CVAs this year.



Like this

loading...
loading...

Latest


11 June 2018
International House of Burgers: 'IHOP' becomes 'IHOb'
"We're flippin' from pancakes, pancakes, pancakes to burgers, burgers, burgers", a Facebook post read. Its bio was changed to "Burgers so burgerin' good, we changed our name to IHOb ".

11 June 2018
Indian Scientists Discover New Planet 600 Light Years Away
Since the planet revolves around host star EPIC 211945201 or K2-236, it will be known as EPIC 211945201b or K2-236b - ISRO said . Being that close, you might think that the planets would be unbearably hot but the scientists say that might not be the case.

11 June 2018
Hundreds of migrants stranded at sea as Italy, Malta close doors
Dalli accused the Italian government of breaching global maritime laws by refusing to allow the Aquarius to berth in its ports. On Sunday, Italy had refused to allow the vessel to dock in its ports, demanding that Malta should take it in.

11 June 2018
'Permanent' peace will be discussed at Trump-Kim meeting - KCNA
Kim met the Singaporean prime minister, Lee Hsien Loong , briefly on Sunday, smiling broadly as the two posed for photographs. Trump, 71, landed at Paya Lebar Airbase on board Air Force One after cutting short his time at the G7 summit in Canada.

11 June 2018
Gears Of War Pop! And Gears Tactics Coming To Mobile Phones
Gears Tactics takes place 12 years before the events of the first game, with COGS facing off against the early Locust invasion. Gears of War 5 , similarly to Gears of War 4 , will be coming to the PC alongside its Xbox One version.

11 June 2018
Elder Scrolls Blades: New free mobile game coming to phones this year
Given that we didn't know if we would see a new Elder Scrolls title anytime in the next five years, this is welcome news indeed. It will eventually be released on PC and consoles as well, with cloud sync so you can pick up and play across all your devices.

11 June 2018
After E3 2018, The Xbox One's Future Has Never Been Brighter
Ubisoft revealed that Division 2 would arrive on PS4, Xbox One and PC, but it was Microsoft that got to show it off properly. Microsoft also said it would start a new studio of its own, called The Initiative, which will be based in Santa Monica.

11 June 2018
Trump G7 tweets 'sobering and depressing': Merkel
French President Emmanuel Macron said "international co-operation can not be dictated by fits of anger and throwaway remarks". Trump's decision to withdraw his support for the communiqué has drawn sharp criticism from Germany on Sunday.

11 June 2018
Sebastian Vettel wins Canadian Grand Prix to retake F1 championship lead
Red Bull's Ricciardo was denied the fastest lap by the early flag waving which meant that did not count. Valtteri Bottas of Mercedes will start beside Vettel on the front row.

11 June 2018
Harry and Meghan to visit Australia, Fiji, Tonga and New Zealand
Meghan also had her hair styled in a bouncy blowout. "They will go on, and good luck to them, long after we are a republic". Since her 2011 Trooping the Colour debut, Kate Middleton has never worn short sleeves, and neither did Princess Diana.