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Published: Tue, June 12, 2018
Economy | By Melissa Porter

5,000 retail jobs at risk as Poundworld rescue talks collapse

5,000 retail jobs at risk as Poundworld rescue talks collapse

Deloitte, which has been co-ordinating efforts to find a solvent deal for the business, is expected to oversee the administration of Poundworld.

Two potential rescue buyouts have already fallen through, with private equity firms Rcapital and Alteri Partners both walking away after talks with current owners TPG Capital.

Poundworld will continue to trade while a buyer for all or part of the business is sought.

A raft of CVAs have been struck in recent months as retailers struggle amid surging costs, rising business rates, competition from online rivals and a slowdown in consumer spending.

The Derry-based budget retailer, Poundworld, has been placed into administration.

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

'Unfortunately, this has not been possible.

Poundworld, which is owned by TPG Capital, has 335 stores.

The company, which has 335 shops and sells everything from flip-flops to deodorant and baked beans, racked up losses of £17.1million previous year. "We thank all employees for their support at this hard time".

It also comes just days after department store chain House of Fraser outlined plans to close 31 of its 59 stores - including its flagship Oxford Street outlet - affecting a total of 6,000 jobs.

A TPG Capital spokesman said: "This was a hard decision for every party involved". Losses for the financial year 2016-17 were £17.1m, up from £5.4m the year before.

"Despite investing resources to strengthen the business, the decline in United Kingdom retail and changing consumer behaviour affected Poundworld significantly".

"Despite investing resources to strengthen the business, the decline in United Kingdom retail and changing consumer behaviour affected Poundworld significantly".

Restaurant businesses have also been seeking to cut their costs with store closure programmes, with Carluccio's, Byron and Prezzo all pushing through CVAs this year.

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