Poundworld is set to reveal plans to launch a company voluntary agreement (CVA) in the coming weeks threatening hundreds of jobs and swathes of stores.
According to Sky News, the discount retailer is due to announce the move early next month and sources close to the company said up to 100 of the chain’s 355 store-state could close.
It is understood that although Poundworld would seek to redeploy staff where possible, it would inevitably lead to hundreds of job losses.
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Though the plans have not yet been finalised, if the retailer pushes ahead with the CVA it would reportedly appoint Deloitte to handle the insolvency proceedings.
This would mark the second UK chain owned by American private equity firm TPG Capital to undergo a CVA in as many months, after the Italian restaurant giant Prezzo gained approval from creditors to shutter large portions of its estate. TPG also owns the plumbing retailer Victoria Plumb.
Poundworld reported a pre-tax loss of £17.1 million in the year to March 31.
In December its chief executive of less than two years Gerry Gray announced his departure with immediate effect, citing personal reasons. It is not clear whether this is connected to the company’s financial difficulties.
Poundworld and TPG declined to comment.
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