Poundworld collapses into administration with Scots jobs at risk

Budget retailer Poundworld is poised to appoint administrators

The budget retailer has appointed Deloitte to handle an administration after last-ditch rescue talks with R Capital broke down over the weekend.

Poundworld has at least 35 stores in Scotland, including six in Edinburgh.

There are round 350 Poundworld outlets across the UK.

The firm’s imminent collapse comes after both Toys R Us and Maplin fell into administration earlier this year.

Poundworld will continue to trade while a buyer for all or part of the business is sought, Deloitte said, adding that there were no redundancies or store closures at this time.

Clare Boardman, joint administrator at Deloitte, said: “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.

“We still believe a buyer can be found for the business or at least part of it and we are keeping staff appraised of developments as they happen. We thank all employees for their support at this difficult time.”

It is understood TPG and Poundworld’s management rejected offers to buy the business out of a pre-pack administration and were hoping to sell it as a solvent business.

Other parties named as possible buyers were turnaround specialist Alteri Investors and Poundworld’s founder Chris Edwards.

But a deal could not be struck.

A TPG spokesman said: “This was a difficult 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.

“Despite investing resources to strengthen the business, the decline in UK retail and changing consumer behaviour affected Poundworld significantly.”

Poundworld’s losses widened in 2016/17 to £17.1 million, from £5.4m of losses the year before.

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

House of Fraser is seeking landlord approval for the restructuring plan, which is a form of insolvency known as a Company Voluntary Agreement (CVA).

A raft of CVAs have been struck in recent months as retailers struggle amid surging costs, rising business rates, competition from online rivals and a slowdown in consumer spending.

Other retailers undertaking CVAs in a bid to keep trading include New Look, Mothercare and Carpetright.

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.

Here is the full list of Poundworld stores:

Croydon

Leicester Haymarket

Chesterfield Clay Cross

Swindon

Kilmarnock Bargain Buys

Kings Lynn

Bradford Foster Square

Luton

Bradford

Kirkaldy Fife Central Retail Park

Wrexham

East Ham

Dartford

West Bromwich Bargain Buys

Paisley Bargain Buys

Kettering

Swansea Parc Tawe Bargain Buys

Coventry

Stevenage

Doncaster

Brighton

Newtownabbey

Wolverhampton

Cleveland Bargain Buys

Lewisham

Bradford

Shepherds Bush

Preston Deepdale Shopping Park

Portsmouth

Llanelli Bargain Buys

Livingston

Wakefield

Middlesbrough Bargain Buys

Harrogate

Archway

Newtownards

Bexleyheath

St Albans

High Wycombe

Omagh

Bury

Bristol Bradley Stoke

Newcastle

Nottingham Trinity

East Kilbride

Shrewsbury

Plymouth

Armagh

Craigavon

Belfast Connswater

Burnley

Wood Green

Glenrothes

Rochdale

Sunderland Bridges Shopping Centre

Ashton Bargain Buys

Merry Hill

Hounslow

Woking

Londonderry

Sunderland

Derby West Field

Gloucester

Northampton

Rotherham Bargain Buys

Hednesford

Bedford

Tottenham

Southport

Coventry

Belfast Donegall Place

Orpington

Taunton

Chesterfield Vicar Lane Shopping Centre

Gravesend

Runcorn Bargain Buys

Banbury Cross

Cramlington Bargain Buys

Cardiff

Canterbury

Cumbernauld

Warrington Bargain Buys

Bristol Emersons Green

Leeds

Chelmsford

Bolton Breightmet

Aberdeen Union

Wakefield

Bishop Auckland Extra

Glasgow Forge

Bristol

Nottingham Ladybay

Nottingham Victoria Centre

St Helens

Crawley

Washington

Newcastle Wallsend

Speke

Chester

Ipswich

Denton

Birmingham Stechford

Motherwell

Exeter

Aberdeen Boulevard Retail Park

Cameron Toll

Southend Bargain Buys

Liverpool

Basildon

Gateshead

Bargoed

Newbury

Bristol Extra

Northampton

Harlow

Romford

Belfast City Side Retail Park

Lincoln

Stockton Bargain Buys

Wisbech

Hull

Reading

Swansea Phoenix Retail Park

Clydebank

Irvine

Castleford

Fulham

Falkirk

Manchester Fort Shopping Park

Guiseley

Edingburgh West

Perry Barr

Wigan Robin

Cleveland

Dunfermline

Merthyr Tydfil

Chester

Hemel Hempstead

Leicester St Georges

Leeds Regent Street

Chatham

Sutton in Ashfield

Southampton

Inverness

Robroyston

Watford

Blackburn Lord Square

Cookstown

Derby

Banbury

Bloxwich

Wolverhampton

Llanelli

Newcastle Byker

Hereford

Ellesmere Port

Greenock

Llantrisant Retail Park

West Ealing

Durham

Killingworth

West Bromwich

Darlington

Aldershot

Peckham

Blackwood

Glasgow Argyle

Paisley

Brighouse

Warrington

Scunthorpe Skippingdale Retail Park

Sheffield Crystal Peaks

Corby

Ayr Heathfield

Sheffield

Boston

Hull Northpoint

Nottingham Broadmarsh

Stafford

Rhyl

Leeds Crown Point

Stockport

Gosport

Swadlincote

Blaydon

Leyton

Goole

Norwich

Bristol Avon Meads

Alloa

Waltham Cross

Slough

Pontardulais

Washington

Straiton

Leeds Kirkstall Road

Bootle

Skelmersdale

Airdrie Bargain Buys

Irvine

Wrexham

Peterborough

Peterlee

South Shields

Leith

Coventry Airport

Rayleigh

Leeds Merrion Centre

Havant

Newton Aycliffe

Newport Bargain Buys

Seacroft

Chester

Stocksbridge

Aylesbury

Middlesbrough

Whitehaven

Doncaster

Warrington

Preston

St Helens Retail Park

Bangor (Wales)

Scunthorpe The Foundry

Newport

Reedswood

Grimsby

Manchester

Darlington

Nelson

Huddersfield New Street

St Helens Bargain Buys

Redcar

Fleet

Crewe

Streatham

York

Accrington

Rotherham

Hermistone

Port Glasgow

Eccles

Queensferry

Lichfield

Bolton

Sheffield Parkway

Southport

Telford

Oldham

Birmingham (The Fort Retail Park)

Sutton Coldfield

Jarrow

Stockton

Maidenhead

Wythenshawe

Rothwell

Dumfries

Bangor

Linlithgow

Strood

Belfast

Hinckley

Middlebrook

Shrewsbury

Burton

Cardiff

Dunstable

Sutton

Barnstaple

Middleton

Halifax

Workington

Grantham

Colwyn Bay Extra

Rotherham Parkgate

Manchester Arndale

Leicester Bargain Buys

Thornaby

Carmarthen

Hamilton

Preston St Georges

Cambourne

Crewe

Andover

Wishaw

Perth

Grays

Hyde

Worksop

Barnsley Wombwell

Bracknell

Blyth Bargain Buys

Bradford Ivegate

Stretford

Shawlands

Leith

Barnsley

Trowbridge

Edmonton Green

Ashton

Ormskirk

Huddersfield Princess Alexandra Walk

Rochdale

Barnsley

Staines

North Shields

Seaham

Wigan

Harpurhey

Blackburn

Swinton

Blyth

Birkenhead

Selby

Hatfield

Torquay

Widnes

Glasgow Forge Retail Park

Liverpool Bell Vale

Derby Southgate

Mansfield

Dagenham

Dewsbury

Kirkby

Bude

Crossgates

Doncaster

Wakefield

Salford

Bolton

Loughborough

Cumbernauld Bargain Buys

Hull

Worksop

Cramlington Manor Walks

Sale