Deloitte called in to Poundworld administration
Deloitte has been confirmed as administrators to discount retailer Poundworld, which is the latest high street casualty facing collapse, with the potential loss of 5,100 jobs
11 Jun 2018
In a statement the firm said: ‘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, restructuring services partner at Deloitte and joint administrator, said: ‘The retail trading environment in the UK remains extremely challenging and Poundworld has been seeking to address this through a restructure of its business.
‘Unfortunately, this has not been possible.’
Deloitte said it is seeking a buyer for some or all of the business. Poundworld was previously in talks with potential buyer R Capital but when these failed, it triggered the decision to opt for administration.
Poundworld, which serves two million customers a week from 355 stores, also trades under the Bargain Buys name. It has been losing money for the past two years, with losses for the financial year 2016-17 totalling £17.1m, up from £5.4m the year before.
Poundworld's US owner, TPG Capital, said in a statement that filing for administration had been ‘a difficult decision’, but ‘despite investing resources to strengthen the business, the decline in UK retail and changing consumer behaviour affected Poundworld significantly.’
Report by Pat Sweet