Hundreds of jobs at risk with Poundworld latest victim of high street woes
Hundreds of jobs could be at risk in the North West with discount retailer Poundworld becoming the latest victim of the woes on the high street.
The chain is understood to be drawing up plans to close 100 of its 355 stores across the country.
The company employs 5,500 staff and has many stores in the region with the largest concentration in Manchester.
It is the latest retailer to draw up plans for a Company Voluntary Agreement. New Look, Toys R Us and Carpetright are just some of the retailers who have agreed CVAs with varying degrees of success.
Poundworld is expected to announce proposals for a CVA some time next week.
House of Fraser and Debenhams have also suffered as a result of the downturn in spending and shift to online shopping.
Although Poundworld will look to move staff to other stores hundreds of jobs are still under threat.
Poundworld will open negotiations with its landlords in a bid to reduce rents and save as many stores as possible.
Deloitte is expected to handle the CVA with the final plans currently being put into place.
The news follows discussions with its owners TPG about a capital injection into the business of about £40m.
TPG Capital also owns the restaurant chain Prezzo whose landlords agreed to a CVA last month. Prezzo is in the process of closing 94 branches.
The problems at Poundworld emerged as Carpetright’s creditors agreed to a restructuring plan.
Carpetright is closing 81 stores under its CVA with the loss of 300 jobs.
At a meeting Carpetright won the backing of more than 75% of creditors to push ahead with the plan, which puts about 300 jobs at risk.
Impairments on fixed assets and leases, as well as restructuring costs, saw Poundworld post a £17.1m pre-tax loss for the year to 31 March.
Poundworld was set up in the 1970s by Chris Edwards, who has since sold the company.
It employs about 5,500 staff and has its headquarters in West Yorkshire. It can trace its origins back to 1974 and a market stall in Wakefield.
