Poundworld has collapsed into administration putting over 5,000 jobs at risk after rescue talks failed over the weekend.
This is the latest blow to Britain’s struggling high street where a string of shops and restaurants, were reduced or discontinued due to rising costs and the compression of consumer spending.
Poundworld, which has 335 stores, filed a notice of intention to appoint an administrator last Thursday, giving it temporary protection from creditors.
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Poundworld falls into administration, putting more than 5,000 jobs under threat
Photos: Matthew Horwood/Getty Images Europe
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Deloitte, which was appointed on Friday as an administrator, said Poundworld would normally while he was looking for a buyer for all or part of the business, adding that it planned no layoffs or store closings.
In Poundworld in Hyde, in Tameside, greater Manchester, customers were shocked upon hearing of the demise of the chain.
“What a shame,” said Sylvia Andrew, 61, who had just paid for a pound of the dummy security camera to protect her chicken coop. “If someone comes to my nickname of chickens, they didn’t know that it’s not real. If you put two AA batteries in the light of the flares,” said she.
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Currently signed to the hospital, she says every penny: “in Poundworld, you get two pears soap for $ 1. It is £1.50 in the supermarket,” she said.
Joan Betts, 48, a nurse, just bought a four pack glow sticks for $ 1 Each, and some garbage bags. She said, “I don’t think a place like this close. I’m in every week to buy things I don’t need”.
Inside, buyers can spend a pound on anything from Slippers to rat poison or packets of Yorkshire pudding mix aunt Bessie.
One of the problems Poundworld may be competitors. Next to Hyde store body discount cosmetics outlet. Near B&M deals, in the Northern chain, which recently announced plans to open 45 stores in southern England.
Add to this the Quality to keep the footage in Iceland in the shopping centre Parking and a branch Jack Fulton, Yorkshire frozen food retaile , and that is understandable hunters spoiled for choice.
Said Deloitte Poundworld struggled in the face of growing competition in the market stock products and also accused of “high product quality, production costs, decrease impact, [and] with a reduction in consumer confidence”.
Two possible rescue of ransom failed, with private equity firms and Rcapital Partners Alteri as steps after talks with the owners of Poundworld, TPG capital, a us Private equity company.
Chris Edwards, who founded the business in Wakefield, Yorkshire, in 1974 before selling it to TPG for £150 million pounds, is also thought to have been interested in the ransom business.
Joint administrator Deloitte, Claire Boardman, said: “retail trading conditions in the UK remains extremely difficult and Poundworld are trying to solve this problem by restructuring its business.
“Unfortunately, it is not possible. We continue to believe that the buyer will be able to find business or at least part of it, and we keep employees informed of events as they happen. We thank all the staff for their support during this difficult time.
Press Secretary of TPG said, “It was a difficult decision for everyone involved. We have invested in Poundworld because of our faith in how the company serves their customers and their employees.
“Despite the investment of resources to strengthen the business, the decline in retail and change in consumer behavior is significantly affected Poundworld”.
Retail analyst Nick bubbles said over the health of the World rival Poundworld, despite a crowded market for discount retailers listed in the business was poorly managed.
“The world does well, despite the overall high pressure on the street a pound of chain growth at B&M and home bargains in food and toiletries and the growth of Aldi and Lidl,” said he.
“And to management, and I suspect Poundworld lost a lot of time, when the founder, Chris Edwards, went out of business.”
Death Poundworld, you should roll in the administration this year, electronics firm maplin and toys R us.
The high street was shocked by a string of retail and restaurant chains announced plans to close stores amid tougher trading conditions.
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House of Fraser announced plans last week to close 31 stores, putting another 6,000 jobs at risk. The company Mothercare, New look and the site of carpetright closed dozens of retail outlets, after creditors approved a company voluntary arrangements (kvass), bankruptcy procedures that allow them to reduce rents to close stores.
Restaurants, including restaurant, Burger chain Byron and Jamie’s Italian are also closed outputs through the process.
Problems Poundworld appeared in April, when its owner was considering launching CVA, affecting about 100 stores.