The owner of discount retailer Poundworld has but the business up for sale after deciding not to pursue a rescue plan.
Last month, it was revealed that up to 1,500 jobs could be at risk as the retailer was understood to be planning the closure of more than a quarter of its 355-store estate as part of a restructuring plan.
However, it is now understood that the process has now been put on hold by US owner TPG after it received expressions of interest in the company.
According to reports, TPG has instructed Deloitte to find a buyer for Poundworld by the end of the month.
In total, Poundworld, which has its headquarters in Normanton, 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.
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.
The Poundworld sale comes as it was revealed that the number of people visiting the high street fell by more than 4% over the last two months – according to figures from the British Retail Consortium.
The figures are the worst since the depths of the recession in 2009 and come as a wave of retailers are struggling to cope with the brutal trading conditions. Other struggling stores include House of Fraser and Carpetright. Fashion brand Bench, which was founded in Manchester, has also gone into administration.
The British Retail Consortium is blaming the squeeze on spending and poor weather in March for the fall in number of people on the high street.
Footfall fell by 3.3% last month according to the BRC and Springboard and by 6% in March.
Diane Wehrle, of Springboard, said: “Not since the depths of recession in 2009 has footfall over March and April declined to such a degree. Even then the drop was less severe at minus 3.8%.”
Wehrle added: “The parlous state of retail trading is highlighted by the fact that footfall post-5pm recovered in the last two weeks of the month, rising by 5.9%, whilst daytime footfall dropped by 0.1%.
“So it is clear that retail trading is doubly challenged by a thrifty consumer, in concert with a continuing predisposition towards leisure rather than retail spend.”
BRC chief Helen Dickinson said changing shopping habits and tough trading were having a major impact on the retail sector. She also called for clarity on Brexit negotiations. She said: “Even once we take account seasonal distortions, the underlying trend in sales growth is heading downwards.
“As negotiations on Brexit continue to play out against this backdrop the importance of addressing the issue of frictionless movement of goods across borders is increasing.
“Retailers must have clarity on this position if they are to continue to provide a wide range of goods for consumers at affordable prices.”
