Poundworld rescue fails, putting 5000 jobs at risk

Last-ditch talks to save struggling Poundworld collapsed on Monday as the retailer went into administration, putting 5000 jobs at risk.

Deloitte had tried to find a solvent deal for the business, but will now oversee the retailer’s administration.

Poundworld owner TPG Capital had been locked in talks with Rcapital over the weekend, with talks from another turnaround investor, Alteri Investors, having ended last week.

Poundworld — purveyor of everything from cheap flip-flops to baked beans — becomes the latest victim of a doom-laden High Street. Maplin and Toys R Us have gone bust this year, with House of Fraser, Mothercare and Carpetright among those cutting jobs and battling tough trading.

TPG last month opted to put Poundworld up for sale, rather than restructure the business costing 1500 jobs.

TPG and Poundworld declined to comment.

Clare Boardman, joint administrator at Deloitte, said: “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.”