Essential reading for retailers and suppliers in the home improvement market

Poundworld calls in administrators putting more than 5,000 jobs on line

Published: 11 June 2018 - Fiona Garcia
 

Discount chain Poundworld has become the latest high street name to fall into administration after attempts to restructure the business have failed.

Deliotte restructuring partners Daniel Butters and Clare Boardman have, today, been appointed as joint administrators to Poundworld Retail Ltd. The move puts a total of 5,100 jobs at risk, although Deloitte has said no stores have closed and that they will continue to trade as normal, with no redundancies at this time

Operating under the Poundworld and Bargain Buys brand names, the company trades from 355 stores, serving more than two million customers and selling around 11 million products a week.

Announcing their appointment, the administrators said: “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.”

The news follows reports that Poundworld had been in talks with a potential buyer R Capital.

Joint administrator Clare Boardman added: "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.”

However, Deloitte believes it could yet find a buyer for the business “or at least part of it,” adding that administrators would keep staff “appraised of developments as they happen”.

 

Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

What do you think?


Has there been a greater uptake from retailers sourcing British-made products in the face of Brexit?


Latest reader comments

re: B&Q invites suppliers to pitch at Innovation Open Day

Brian Eacersall
Hi B & Q innovations Team.I have already sent in an e-mail outlining my design using the request to become a supplier route.However I ...

re: Toolstation.com excels in Which? website survey

Muhammad idrees
Good service and price also good...

re: Mike Ashley calls Debenhams administration a “national scandal”

m orourke
How can senior management at debenhams stay in post whilst abdicating their responsibilies to a bunch of consultants to save the buisness ...

re: B&Q and Valspar partnership to "transform the paint market in the UK"

Tony Turner
A bit of context: first decorating undertaken in 1968, have continued to decorate at DIY and professional level ever since, Wife has ...

re: Builder wins Toolstation's prize draw pick-up

Brian Easton
Brilliant delivery, much help from Daniel and Shakil...

Most read stories