More than 5,000 jobs at risk as Poundworld braced for administration

More than 5,000 jobs hang in the balance as value retailer Poundworld is expected to announce its intention to appoint administrators.

The move will allow the company up to two weeks to continue talks with potential buyers without the company’s creditors being able to make a claim on the business.

It follows yesterday’s reports that a buy-out firm which was looking to back Poundworld had ended talks about a rescue deal.

Alteri Investors was announced as the likely contender to put forward a rescue deal for the Wakefield-headquartered firm, which would have saved thousands of jobs despite proposals to close stores.

However, it is understood that Alteri Investors has pulled out of negotiations.

It is thought that investment company R Capital is in talks to try to buy Poundworld, which has 5,300 workers and 355 stores.

The potential administrator, Deloitte, is understood to be standing by if the company fails to find a buyer.

Poundworld is owned by private equity firm TPG.

TPG, which bought a majority stake in Poundworld in 2015, also controls the restaurant chain Prezzo whose landlords and creditors agreed a restructuring last month.

The news comes as department store chain House of Fraser announced this morning it was planning to close 31 of its 59 stores, including its flagship on London’s Oxford Street, putting 6,000 jobs at risk.