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”.