Britain's Poundworld Goes Into Administration, Putting 5,100 Jobs At Risk
British discount retailer Poundworld has gone into administration, putting 5,100 jobs at risk and becoming the latest victim of brutal trading conditions in the UK retail sector.
On Monday, business services firm Deloitte said that it had been appointed as Poundworld's administrator.
Private-equity group TPG Capital, Poundworld's majority owner, put the discount retailer up for sale last month, but has failed to find a buyer.
Deloitte said that Poundworld, which operates 335 stores across Britain, would continue to trade while a buyer for all or part of the business is sought, and there would be no immediate redundancies or store closures.
Poundworld, based near Wakefield, northern England, is the latest British retailer to be hit by rising costs, cash-strapped consumers, and a shift to online shopping. It follows the collapse this year of Toys R Us UK, electricals group Maplin, and drinks wholesaler Conviviality.
"The retail trading environment in the UK remains extremely challenging, and Poundworld has been seeking to address this through a restructure of its business," said the joint administrator for Poundworld, Clare Boardman.
"Unfortunately, this has not been possible. We still believe a buyer can be found for the business, or at least part of it," Boardman said.
Some other British retailers are closing stores, including Marks & Spencer, fashion retailer New Look, floor coverings group Carpetright, mother-and-baby goods retailer Mothercare, and department store House of Fraser.