Jobs fears as Poundworld to axe up to 100 stores

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Up to 1,500 jobs could be at risk as discount retailer Poundworld is understood to be planning the closure of more than a quarter of its 355-store estate.

Poundworld, which has its headquarters in Normanton and is owned by American buyout titan TPG Capital, is expected to announce proposals for a Company Voluntary Arrangement next month.

If the CVA plans go ahead, it is thought that around 100 shops across the country may be shut.

In total, Poundworld employs about 5,500 people.

Poundworld started in 1974 as a market stall in Wakefield. TPG acquired a majority stake, understood to be for the sum of £150m, in 2015.

A string of big names have pursued CVAs this year, including New Look, Byron, Prezzo and Carpetright.

Prezzo, a restaurant chain which is also owned by TPG, recently revealed the terms of its CVA in a proposed restructuring that will see 94 restaurants shut. Terms included rent reductions and terminating leases of restaurants that are not trading.

TPG acquired Prezzo in November 2014, delisting the company from the AIM in a deal valued at more than £300m.

A spokesperson for Poundworld declined to comment when approached by TheBusinessDesk.com.

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