Poundworld falls into administration

A number- or all- of Poundworld's stores could be sold

Poundworld is expected to crash into administration this morning after last-ditch sales talks broke down, putting 5,100 jobs at risk, the Press Association understands.

Deloitte is expected to be appointed to oversee the administration.

Deloitte said Poundworld would trade as usual while it seeks a buyer for all or part of the business, adding that no redundancies or store closures are yet planned.

Deloitte said there are no redundancies or store closures now and has been working alongside the company in a bid to keep it afloat.

Like many retailers, Poundworld has been hit by falling consumer confidence, rising overheads, the weaker pound and the growth of online shopping.

Poundworld has been losing money for the past two years.

Poundworld, which has a chain of 335 shops, filed a notice of intention to appoint an administrator last Thursday, giving it temporary protection from its creditors.

Other parties named as possible buyers were turnaround specialist Alteri Investors and Poundworld's founder Chris Edwards.

The high street has also been rocked by a succession of retailers and restaurant chains unveiling plans to shut down stores to reflect tougher trading conditions.

The stores suffered a major rise in multi-million pound losses previous year - rising from £5.4m to £17.1m in 2016/17.

House of Fraser is seeking landlord approval for the restructuring plan, which is a form of insolvency known as a Company Voluntary Agreement (CVA).

Other retailers undertaking CVAs in a bid to keep trading include New Look, Mothercare and Carpetright.

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