Family considers legal action after Poundworld purchase falls through
An Irish family have said they are considering pursuing legal action after a deal for them to acquire dozens of Poundworld stores in the UK collapsed.
Poundworld UK, which was bought by US TPG Capital in 2015 for £15m, collapsed into administration in June, closing over 250 stores and resulting in the loss of 4,000 jobs.
The Henderson family, who opened Ireland’s original Poundworld store in 1984, said earlier this month that they had struck an agreement with Deloitte, Poundworld’s administrators, to acquire the firm’s “best and remaining” stores.
Ray Henderson founded Poundworld, an Irish company, in 1987 before the family sold it in 2007. That company had no relationship with the UK Poundworld that has just gone into administration.
His son, David, now leads the family’s business interests. They did not disclose details of the deal, but it was believed that the family were set to acquire 34 shops.
However, the Henderson family have now said the deal had collapsed, according to The Times.
“The family is preparing a letter of complaint to the Institute of Chartered Accountants in England and Wales into the conduct of Deloitte UK during the negotiations for the purchase of the Poundworld UK company,” the Hendersons said in a statement.
“The family is also requesting the Institute to carry out an independent investigation into this issue. It is also reviewing a number of legal options that can be pursued.”
Deloitte said: “We had an agreement in principle (with the Hendersons), but the sale didn’t go through. Following the closure of all stores, the administrators are actively seeking offers for the sale of the Poundworld brand and related intellectual property.”
The collapse of the agreement between the Hendersons and Deloitte comes as supermarket chain Iceland struck a deal to buy a number of Poundworld stores.
“We have agreed to take over 19 former Poundworld units in the UK, 15 of which will become Iceland fascia stores and four of which will be fitted out in our larger Food Warehouse format. All are expected to open in 2019,” a spokesman for the company said.
The remaining Poundworld stores were recently shut by Deloitte.
