Poundworld is preparing to appoint administrators as the struggling discount chain, makes a last attempt to avoid collapse.
On Thursday, the retailer, which has 5,000 employees, has filed notice of intention to appoint an administrator. Supply temporarily shields Poundworld from its creditors, giving bosses 10 working days to come up with a restructuring plan shopping network 355.
Poundworld problems first appeared in April, when its owner, U.S. Private equity firm tpg Capital were said to be considering a plan to launch a CVA, the procedure of bankruptcy, which will reduce rent and to close about 100 stores.
Poundworld was acquired by TPG capital for £150 million in 2015, but he fought the wave leaving the UK the impact of sterling, which led to an increase in the cost of imported goods. Last month, TPG uses a CVA to close about 100 branches of his ailing restaurant.
In may it emerged that TPG has decided to cut his losses and Poundworld, which started in 1974, as a stall in the market in the city of Wakefield in West Yorkshire, for sale. But has not made the deadline on Monday, the company uses the moratorium provided by the court filing to try to collect the eleventh hour online ahead of its next rent payment date, that is June 24.
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Difficulties Poundworld come as a series of shops and restaurants tend to leave outlets in the face of rising prices and a sharp reduction in consumer spending. House of Fraser announced plans Thursday to close 31 stores, putting another 6,000 jobs at risk. The company Mothercare, New look and the site of carpetright, all closed dozens of stores after the creditors approved of the brew. Hamburger chain Byron and Italian restaurants, Jamie also closed outputs through the process.
There may be some hope for employees Poundworld as the crisis firm RCapital say discuss to salvage the deal with tpg. The return of Chris Edwards, the founder of the company, which sold to a private equity firm, had also been mooted.