Poundworld enter administration with 5000 jobs at risk

26
Found 11th Jun
Going in to administration at 10.00AM.

Talks with a potential buyer R Capital have collapsed meaning that the chain felt it had no other option but to put the company into administration.

Poundworld, which has 355 stores, and serves two million customers a week, also trades under the Bargain Buys brand name.

Deloitte is expected to be appointed to oversee the administration.

It will be hoping to sell the business as a going concern.

Six reasons behind the High Street crisisFive things to do with empty retail space

Poundworld has been losing money for the past two years. Losses for the financial year 2016-17 were £17.1m, up from £5.4m the year before.

It's the latest High Street retailer to run into trouble.

Just last week, department store chain House of Fraser said it would close 31 of its 59 shops, citing the need to adapt to "fundamental change" in the retail industry.

A combination of falling consumer confidence, rising overheads, the weaker pound and the growth of online shopping have made it tough for traditional retailers.

Electronics chain Maplin and toy chain Toys 'R' Us both collapsed into administration earlier this year.

Other High Street chains such as Mothercare and Carpetright have been forced to close stores in order to survive.

Restaurant chains such as Italian chain Carluccio's, pizza restaurant Prezzo and burger chain Byron have also had to close stores as they battle a triple-whammy of falling trade, higher costs and increased competition.

Poundworld, which has its headquarters in West Yorkshire, was formed in 2004, but it says it can trace its origins "back to 1974 and a market stall in Wakefield, West Yorkshire".

Investment company TPG, which bought a majority stake in Poundworld in 2015, also controls the restaurant chain Prezzo whose landlords and creditors agreed a restructuring last month.

A formal administration announcement will be made at 10am when the court opens.

bbc.co.uk/new…435 (https://www.bbc.co.uk/news/business-44436435)
Community Updates
Poundworld faces collapse after rescue talks fail

6963-v10yv.jpgTalks with a potential buyer R Capital have collapsed meaning that the chain felt it had no other option but to put the company into administration.

Poundworld, which has 355 stores, and serves two million customers a week, also trades under the Bargain Buys brand name.

Deloitte is expected to be appointed to oversee the administration.

It will be hoping to sell the business as a going concern.

Six reasons behind the High Street crisisFive things to do with empty retail space

Poundworld has been losing money for the past two years. Losses for the financial year 2016-17 were £17.1m, up from £5.4m the year before.

It's the latest High Street retailer to run into trouble.

Just last week, department store chain House of Fraser said it would close 31 of its 59 shops, citing the need to adapt to "fundamental change" in the retail industry.

A combination of falling consumer confidence, rising overheads, the weaker pound and the growth of online shopping have made it tough for traditional retailers.

Electronics chain Maplin and toy chain Toys 'R' Us both collapsed into administration earlier this year.

Other High Street chains such as Mothercare and Carpetright have been forced to close stores in order to survive.

Restaurant chains such as Italian chain Carluccio's, pizza restaurant Prezzo and burger chain Byron have also had to close stores as they battle a triple-whammy of falling trade, higher costs and increased competition.

Poundworld, which has its headquarters in West Yorkshire, was formed in 2004, but it says it can trace its origins "back to 1974 and a market stall in Wakefield, West Yorkshire".

Investment company TPG, which bought a majority stake in Poundworld in 2015, also controls the restaurant chain Prezzo whose landlords and creditors agreed a restructuring last month.

A formal administration announcement will be made at 10am when the court opens.

bbc.co.uk/new…435
Misc
26 Comments
Never seen one let alone been in one!

Their site says my nearest one is 6.0 Miles away, its in a shopping centre where parking is £3 for 0 - 3hrs....!
Instead of just parroting news headlines perhaps you could start linking to the source, or even give some actual details in the OP. Maybe even give your own opinion.

Novel ideas, I know.
RossD8916 m ago

Instead of just parroting news headlines perhaps you could start linking …Instead of just parroting news headlines perhaps you could start linking to the source, or even give some actual details in the OP. Maybe even give your own opinion.Novel ideas, I know.


I added additional information
Internet shopping with 1-3 days delivery time this trend will continue. Terrible food is the cause of restaurants failing although food is very price sensitive and most of us won't pay enough money to sit down and eat good food vs takeaway or cooking at home
Edited by: "wayners" 11th Jun
Strange that Byron is going into administration - George Osborne is either a shareholder or is good friends with their shareholders - as mentioned during the Byron Burgers scandal when they set up a training day to the people they employed paying peanuts - and the people did not have the right immigration papers to work in the UK.

What goes around, comes around. I could say 'good riddance', but seems just a strategic move - most are not family businesses, they will come back under a different brand. They build up debt then 'go down' just so they don't have to pay the debt. Then open up another store with a different name / different English channel / Caribbean / Isle of Man trust/made up company.
The poundworld shops near me are next door to Poundland and places like Wilko or knock off 99p shops.

Also their location on the high street (near me doesn't help) you walk past the other shops first before seeing poundworld, so you would end up in those shops. Then not need anything from poundworld.
I wonder how much Poundworld will be sold for?
Avatar
deleted1315437
mrew4211th Jun

I wonder how much Poundworld will be sold for?


1 pound
groenleader4 h, 40 m ago

Never seen one let alone been in one!Their site says my nearest one is 6.0 …Never seen one let alone been in one!Their site says my nearest one is 6.0 Miles away, its in a shopping centre where parking is £3 for 0 - 3hrs....!


Sounds like Car Pound World.
It went wrong when they started selling items for more than a pound.
ParadisePapers3 h, 31 m ago

Strange that Byron is going into administration - George Osborne is either …Strange that Byron is going into administration - George Osborne is either a shareholder or is good friends with their shareholders - as mentioned during the Byron Burgers scandal when they set up a training day to the people they employed paying peanuts - and the people did not have the right immigration papers to work in the UK.What goes around, comes around. I could say 'good riddance', but seems just a strategic move - most are not family businesses, they will come back under a different brand. They build up debt then 'go down' just so they don't have to pay the debt. Then open up another store with a different name / different English channel / Caribbean / Isle of Man trust/made up company.


We call them Fiendnicks.
.MUFC.16 m ago

It went wrong when they started selling items for more than a pound.


This is the event that set the rot, bbc.co.uk/new…858
In this process £75m was pocketed by Chris Edwards. This means wealth extraction.

Think for yourself, you run a chip shop, money goes round and round forever. You sell it to your brother and pockets half of the money and go away. There is now less of half of that money that used to go round and round in the business, if your brother didn't grow fast enough extra money to fill that gap, your brother is a goner.
Here is the half of the money that went away, dailymail.co.uk/new…tml
Edited by: "splender" 11th Jun
_Enzo_5 h, 8 m ago

I added additional information



RossD895 h, 25 m ago

Instead of just parroting news headlines perhaps you could start linking …Instead of just parroting news headlines perhaps you could start linking to the source, or even give some actual details in the OP. Maybe even give your own opinion.Novel ideas, I know.



Copy and paste, is solid sought after skill that makes Britain great.
Edited by: "splender" 11th Jun
Bring back 99p stores.
Our local store always has a decent queue of people buying stuff, so I don't know how they are doing worse than £land.
I don't think they'll last, I was in our local store on Friday and they were miserable as anything, stock was running low with a lot of the shelves empty (they're usually always well stocked and constantly re-stocking) the staff was also slagging off the company to anyone who mentioned it at the till - also giving away free carrier bags! One woman mentioned 10 days (from last friday) until they run out of time and money to find a possible buyer.
AW007911th Jun

Bring back 99p stores.



99P Stores operated by buying stuff for cheap from Middle east and then selling them here for a quid.
Unfortunately, neither £land or £world have been able to do this.

My top favourite atm is Sam's 99p stores.
mrew427 h, 44 m ago

I wonder how much Poundworld will be sold for?


$1, no one will pay full price for a £ shop.
Biggest problem i would argue are the parking charges at some car parks, I'm my local it is £1 for 45 mins or jumping to £2.40 for 2 hours, a lot of people opt for the money saving £1 option, this then means by the time they have got onto the high street a good several minute walk they are lucky if they have time to go in 2 or 3 shops and even then they are rushing. If they had more time to browse it could lead to more sales, especially if they had time to visit more shops such as the poundworld, the 45 mins is to short so should at least be moved to 1 hour and the 2 hour option reduced to try encourage shoppers to take there time.
Edited by: "SOUTHWALES" 11th Jun
AW00795 h, 56 m ago

Bring back 99p stores.


I miss 99p stores too, were far better than Poundland on many things. Sam 99p is the best alternative now.

Not surprised Poundworld is going down, stores had poor locations and most people had no idea it existed (or call it Poundland). Stores are poorly stocked and have a poor range of stock. I loved watching Pound Shop Wars on the BBC though!
zworld13 h, 24 m ago

99P Stores operated by buying stuff for cheap from Middle east and then …99P Stores operated by buying stuff for cheap from Middle east and then selling them here for a quid.Unfortunately, neither £land or £world have been able to do this. My top favourite atm is Sam's 99p stores.


The two Sam's 99p stores near me changed to Poundworld.
Already have the "depressing" list of high street brands / companies going ker putt, running with this in it from 2 months ago, some interesting comments for anyone who thinks it can only get worse, before it gets bad!!

hotukdeals.com/dis…319


AW00794 h, 0 m ago

The two Sam's 99p stores near me changed to Poundworld.


Will not be long before they close or are maybe saved if chris ((org founder)) can get the pennies together to make the pounds!
They just sell smaller things for a £1 that you could buy cheaper elsewhere. ie 5 bags of crisps instead of 6, 375ml bottles of coke instead of 500ml. Poundstrecher is much better as is Home Bargains.
Edited by: "mtc1" 13th Jun
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