Poundworld to Close 40 Stores and Shed Over 500 Jobs

The discount retail chain Poundworld is to close 40 of its stores around the country and make more than 500 people redundant.

Poundworld became the latest victim of the squeeze on high street retailers across the UK when it succumbed to financial crisis and entered administration last month.

There had been hopes that buyers might be found for parts of the business and some of its stores, but no rescue deals have yet been done.

The company’s administrators from Deloitte have said that they continue to look for potential buyers of all remaining aspects of the retail operation.

“We are keeping staff appraised of developments as they happen,” said joint administrator Clare Boardman in a statement.

“We would like to thank all the employees for their continued support and commitment during this difficult time,” she added.

Prior to its entry into administration, Poundworld had employed a total of more than 5,000 people in the UK.

Earlier in July, the company’s administrators announced that 105 of its stores were to be closed and that around 1,200 jobs would be directly affected.  

The latest announcements on plans for the business will see 40 stores closed from July 24th, with 531 people expected to lose their jobs as a consequence.

Poundworld was founded in 1974 by Chris Edwards, who recently attempted to buy back aspects of the business himself but without success.

Other potential new owners, including the retail turnaround specialists of Alteri Investors, have held talks with administrators about possibly buying parts of the business but no rescue agreement has yet been reached.

British retailers have been faced with highly challenging trading conditions in recent quarters and many well-known high street operators have disappeared from towns and cities nationwide over the past year.

According to a report put together by the Press Association last month, there were as many as 50,000 jobs lost within the UK’s retail sector during the first half of 2018.

Toys R Us and Maplin were two of the most high profile entries into administration so far this year but several other big name retailers have been forced to radically restructure their finances in order to avoid insolvency.