Over 5000 jobs are now in danger as Poundworld confirms the appointment of administrators after a failed sales process.
Last week it was revealed that the discount retailer’s last-ditch rescue talks for a possible takeover by Alteri Investors had fallen through.
A second round of rescue talks with R Capital which took place over the weekend are understood to have also failed.
Poundworld will continue to trade until a buyer is found for all or parts of its business, which trades across 350 stores and employs around 5100 people.
“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,” a TPG spokesperson said.
“Despite investing resources to strengthen the business, the decline in UK retail and changing consumer behaviour affected Poundworld significantly.”
Deloitte joint administrator Clare Boardman added: “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.”
In May, Poundworld placed its CVA plans on hold opting to try and sell a chunk of the company, drafting in Deloitte to help find a buyer.
Documents seen by The Grocer revealed this would have seen 117 stores shut by August 31 and the loss of 1500 jobs.
Its financial turmoil has been bolstered by the withdrawal of its credit insurance, which subsequently led to suppliers demanding £6 million in payments immediately.
It is also understood to have played havoc with the retailer’s stock availability.
The Brexit-hit sterling, rising overheads including business rates and wages, as well as falling consumer spend were all also cited as reasons for its financial difficulties.