Poundworld calls in administrators after rescue talks fail

Poundworld calls in administrators after rescue talks fail

Poundworld, which is owned by TPG Capital, has 335 stores.

It's not known how many people are employed at the branch in Corporation Street in Corby and Northfield Avenue.

The expected announcement is the latest in a line of bad news for the retail sector.

The retailer's move would come just days after House of Fraser detailed its plans to shut 31 stores, affecting around 6,000 jobs.

Carpetright (Other OTC: CGHXF - news), Marks & Spencer (Frankfurt: 534418 - news), Mothercare (Other OTC: MHCRF - news) and New Look are among the other retailers which have announced store closure plans this year, with thousands of jobs disappearing as a effect.

The Derry-based budget retailer, Poundworld, has been placed into administration. "We still believe a buyer can be found for the business or at least part of it", she said.

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Poundworld's collapse comes after electronics chain Maplin and Toys R Us - each with Stevenage sites - both went into administration this year. Unfortunately, this has not been possible'.

Poundworld's losses widened in 2016-17 to £17.1 million, from £5.4m of losses the year before.The retailer was hit with a £5.7 million charge for onerous leases, a provision retailers make when the cost of a lease is no longer covered by the income of the store.

Other retailers undertaking CVAs in a bid to keep trading include New Look, Mothercare and Carpetright. "We thank all employees for their support at this hard time".

There are four Poundworld stores in Sheffield, three in Doncaster, two in Rotherham and two in Barnsley.

A TPG Capital spokesman said: "This was a hard decision for every party involved". We invested in Poundworld because of our belief in how the company serves its customers and the strength of its employees'.

Restaurant businesses have also been seeking to cut their costs with store closure programmes, with Carluccio's, Byron and Prezzo all pushing through CVAs this year.

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