Halifax's Poundworld to be shut down

Administrators to collapsed discount retailer Poundworld will close 25 stores in an organised wind down.

The closures will result in 242 job losses. That last day of trading for the affected stores will be July 15.

The contingency plan begins

Poundworld went out of business last month and Deloitte, which is overseeing the process, has been attempting to secure a buyer for the business ever since.

But a leaked memo to staff penned by the professional services firm said, “As previously advised, the administrators have been preparing contingency plans in the event that we are not able to deliver a sale of the business as a whole.

“These plans have been continuing and it is with regret that the administrators have taken the decision to effect an organised wind down of 25 stores, starting today.”

The following Poundworld stores are due to closeDoncasterNorth ShieldsWakefieldStretfordSutton CoalfieldAshtonBlackburnManchester ArndaleDentonDerby West FieldNottingham BroadmarshGraysMiddlebrookChesterNewcastle WallsendBradford IvegateBirminghamCreweHalifaxLiverpool Bell ValeLoughboroughIpswichCarmarthen

Could the business still be saved?

Poundworld, which was formerly owned by private equity firm TPG Capital, has 335 stores and employs around 5,100 people.

Deloitte last week turned down a bid for Poundworld from its founder, Chris Edwards, who was looking to save a raft of stores and safeguard around 3,000 jobs.

However, the founder of rival Poundland, Steven Smith, is in early-stage talks about a bid to salvage part of Poundworld out of administration.

Daniel Butters and Clare Boardman at Deloitte have already made 100 people redundant at Poundworld’s head office in Normanton, West Yorkshire.Read more at: https://www.halifaxcourier.co.uk/read-this/poundworld-stores-closure-list/