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Money Hundreds of jobs to go as Poundworld swings the axe on 25 stores

16:20  10 july  2018
16:20  10 july  2018 Source:   msn.com

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Hundreds of jobs are under threat at the discount retailer Poundworld as its owners draw up plans to close more than a quarter of its 355- store estate.

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Hundreds of jobs to go as Poundworld swings the axe on 25 stores © Provided by The Press Association Hundreds of jobs to go as Poundworld swings the axe on 25 stores Administrators to collapsed discount retailer Poundworld are to close 25 stores, resulting in 242 job losses.

Poundworld went bust last month and Deloitte, which is overseeing the process, has been attempting to secure a buyer for the business ever since.

But a memo to staff penned by the professional services firm, and seen by the Press Association, said: “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.

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The high street has been rocked by a fresh wave of store closures and job losses as household names including Carpetright, Fenwick and Poundworld announced major restructuring programmes. “The 25 -year leases, with upward only rent reviews, signed in the 90s and noughties have run out of road.”

POUNDWORLD is to axe up to 100 of its shops, putting 1,500 jobs at risk in the latest blow to the high street. It follows similar move from New Look and Carpetright, which are expected to close 60 and 92 stores respectively, putting hundreds of jobs at risk.

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

That last day of trading for the affected stores will be July 15.

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

The news comes as hopes for a rescue of the beleaguered retailer fade.

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.

However, on Monday the Press Association revealed that the founder of rival Poundland, Steven Smith, is in early-stage talks about a bid to salvage part of Poundworld out of administration.

Deloitte said that with discussions are continuing with interested parties with offers received for a significant number of stores, the head office and distribution centre.

Clare Boardman, joint administrator at Deloitte, said: “Whilst we remain hopefully that a sale for part of the business can still happen, it has not been possible to sell the business as a whole, resulting in today’s announcement.

“We would like to thank all the employees for their continued support and commitment during this difficult time.  We are keeping staff appraised of developments as they happen.”

Deloitte has already made 100 people redundant at Poundworld’s head office in Normanton, West Yorkshire.

Poundworld to disappear from high street .
Collapsed budget retailer Poundworld will disappear from the high street next month after its administrators announced the chain's final set of store closures. Administrators Deloitte has said all of Poundworld's 335 stores will likely close by 10 August, affecting 2,339 staff.The budget retailer will also close its warehouse and distribution network, as well as its head office in Normanton, West Yorkshire, leading to the loss of 300 jobs.The announcement comes a day after administrators said 40 more Poundworld stores were to close later this month, leading to the loss of 531 jobs.

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