NATIONAL: Poundworld axes around 100 jobs after going into administration

Poundworld went into administration last weekPoundworld went into administration last week
Poundworld went into administration last week

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Poundworld has axed around 100 jobs from its head office a week after going into administration.

The budget retailer collapsed last week, with administrators Deloitte being called in on June 11, putting a total of 5,100 jobs at risk nationwide.

Poundworld has now been forced to make 98 staff at its head office in Normanton, Yorkshire, redundant.

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Sky News reports that staff were ‘left in tears’ after the redundancies were announced at a meeting on Monday.

Deloitte asked for bids for Poundworld to be submitted by last Friday, but it is thought a buyer for the whole business may not materialise.

It is understood that any interested parties could pick up just sections of its store estate.

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Poundworld, which is owned by private equity firm TPG Capital, was considering a sweeping store closure programme even ahead of its collapse.

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The budget chain has 335 stores including one in Portsmouth, which are still currently operational and continue to receive stock from the business’ distribution centre.

Announcing Poundworld’s administration last week, Deloitte said the firm was hit by falling footfall, rising costs and weak consumer confidence.

TPG said putting the business into administration was a “difficult decision”, and that the retailer was affected by a decline in the UK retail sector.

The news came just days after House of Fraser detailed its plans to shut 31 stores, affecting around 6,000 jobs.

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Several retailers have collapsed into administration this year, with both Maplin and Toys R Us disappearing from the UK.

New Look, Mothercare, Carpetright and a string of restaurant brands have also been shutting stores in a bid to stay afloat.