531 jobs on the chopping block as Poundword closes 40 more stores

Poundland creditors

Hopes are beginning to fade for beleaguered discount retailer Poundworld to be rescued after an additional 40 store closures were announced as part of its administration process.

The affected stores will close on Tuesday, July 24 and will see 531 staff lose their jobs.

Poundworld collapsed last month, but administrators Deloitte have been unable to find a buyer and a string of store closures and job cuts in recent weeks mean the chain is closer to disappearing from the high street.

At its peak, Poundworld employed around 5100 people across more than 300 stores.

Deloitte has reiterated that discussions with interested parties for the potential sale of “part, or parts of the remaining business” were still ongoing.

It is understood that one of those interested parties is Steven Smith, the founder of Poundworld’s biggest rival Poundland, who is reportedly considering a partial buyout.

“We would like to thank all the employees for their continued support and commitment during this difficult time,” joint administrator Clare Boardman said.

“We are keeping staff appraised of developments as they happen.”

The news comes after Deloitte last week revealed 105 Poundworld store closures, impacting around 1200 jobs.

Deloitte has also made 100 people redundant at Poundworld’s head office in Normanton, West Yorkshire.

Additionally, a separate rescue bid from Poundworld’s founder and former chief executive Chris Edwards was rejected by Deloitte, which was set to see 180 of its stores and 3000 staff members jobs saves.

It is understood that Edward’s offer was below what Deloitte considered to be a “credible bid” for the discount retailer.

Edwards, who founded Poundworld in 1974, was critical of how his offer was received by Deloitte, and said he was “shocked and surprised” that he was turned away.

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