Grim news for Harlow as Poundworld goes into administration

Business / Mon 11th Jun 2018 at 06:50pm

DISCOUNT retailer Poundworld has appointed administrators, putting 5,100 jobs at risk reports the BBC.

There is a Poundworld in the Water Gardens.

The move came after talks with a potential buyer, R Capital, collapsed leaving Poundworld with no option other than administration.

Poundworld, which serves two million customers a week from 355 stores, also trades under the Bargain Buys name.

Administrators Deloitte stress the stores will continue to trade as normal with no redundancies at this time.

It said in a statement: “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, joint administrator at Deloitte, 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.”

She said Deloitte believed a buyer could be found for the business, or at least part of it.

A spokesperson for Poundworld”s owner, TPG said filing for administration had been “a difficult decision”.

Poundworld“Despite investing resources to strengthen the business, the decline in UK retail and changing consumer behaviour affected Poundworld significantly,” they added.

Poundworld has been losing money for the past two years. Losses for the financial year 2016-17 were £17.1m, up from £5.4m the year before.

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