Poundworld begins closing down sale with no buyer in sight

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Poundland founder Poundworld

Poundworld has started the next phase of its administration process with a closing down sale amid its struggle to find a buyer.

Administrators at Deloitte have called in consultants at Hilco to begin stock clearances.

Deloitte informed staff at the collapsed retailer that Hilco would “help advise and support” them during the process.

Hilco is often known as a retail restructuring specialist, having rescued HMV from collapse in 2013 and recently buying Homebase.

The news comes in the same week it that 100 redundancies were made in Poundworld’s head office.

In a note sent to staff, the retailer said: “It has been decided that stores are to commence ‘closing down’ sales. For clarity, this does not mean that store will definitely close.

“The administrators’ strategy remains the same; to continue to trade the business in order to realise the stock whilst seeking to secure a sales of the business, either in whole or part.

“Please be assured that the Hilco team are very experienced retail consultants who, in many cases, have been through this process themselves.”

Deloitte is still considering bids for Poundworld’s assets, including sections of its 335-strong store estate.

The retailer went into administration last week, putting more than 5000 jobs at risk.

The retailer’s stores are still operational and continue to receive stock from its distribution centre.

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