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.

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