Poundworld’s rescue hopes dashed with all stores to close next month

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Poundworld creditors

Hopes to rescue Poundworld from leaving the high street have been dashed after after its administrators announced the retailer’s final set of store closures.

Deloitte, which was flown in to handle the administration last month, confirmed yesterday that all of Poundworld’s remaining 230 stores will close down by August 10.

This will affect 2339 staff.

The budget retailer is also reportedly closing its warehouse and distribution network, leading to the loss of 300 jobs.

Deloitte have been announcing tranches of store closures over the past two weeks after failing to find a buyer for the whole business since it collapsed into administration on June 11.

So far, 145 Poundworld stores have been shut or are about to shut down while 100 people have already been made redundant at the head office in Normanton, West Yorkshire.

At its peak, the discount retailer employed around 5100 people across more than 300 stores.

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

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

The administrators are still in talks with some interested parties about selling parts of the remaining business, but hopes of saving a significant number of jobs has faded.

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.

The founder of rival Poundland, Steven Smith, was linked to a bid to salvage part of Poundworld out of administration.

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