Job losses confirmed as date set for 25 Poundworld stores to close

By Grimsby Telegraph | Posted: 11 Jul 2018

The administrators to troubled retailer Poundworld have announced they are to close 25 stores, resulting in 242 job losses.

A memo to staff, seen by the Press Association, said that last day of trading for the impacted stores will be Sunday, July 15.

"As previously advised, the administrators have been preparing contingency plans in the event that we are not able to deliver a sale of the business as a whole.

"These plans have continuing and it is with regret that the administrators have taken the decision to effect an organised wind down of 25 stores, starting today."

Yesterday it was announced that Poundland's founder Steven Smith is considering a return to the high street with a swoop on embattled retail rival Poundworld.

Mr Smith, who founded Poundland in 1990, is in early-stage talks about a bid to salvage part of Poundworld out of administration, sources told the Press Association. Poundworld fell into administration on June 11 and the retail chain has started closing down sales.

Deloitte last week turned down a bid for Poundworld from its founder Chris Edwards, who was looking to save a raft of stores and safeguard around 3,000 jobs.


The Poundworld clearance sale is offering 50% off

Mr Smith sold Poundland to Advent International in 2002 and is now a retail consultant and speaker. His son, Ashley Smith, launched Poundshop.com in a bid to replicate his father's success in the online arena.

Poundworld, which was formerly owned by private equity firm TPG Capital, has 335 stores and employs around 5,100 people.

Joint administrators Daniel Butters and Clare Boardman have already made 100 people redundant at Poundworld's head office in Normanton, West Yorkshire.

Deloitte is still in talks with a number of bidders in the hope of selling part of the business. As part of the process, Deloitte must first seek to sell the business as a going concern and, failing that, must achieve a better deal for creditors than they would secure by selling off Poundworld's property.

Mr Edwards said last week that he was "shocked and surprised" that his bid for around 180 of Poundworld's stores was rejected by Deloitte.

"I've made a substantial and credible offer, which is the best offer we can put forward, but in my opinion it hasn't been given the respect it deserves," he said.

"Although it was close to what the administrator wants, we've now had written confirmation that it's not high enough, which I'm shocked and surprised at, considering we were going to save 3,000 jobs."

Mr Smith and Deloitte declined to comment.



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