Poundworld suspends CVA as US owners receive expressions of interest
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TPG Capital, the US owner of Poundworld, has delayed plans of a potential Company Voluntary Agreement (CVA) for the discount retailer as it has received expressions of interest for the company.
Poundworld was due to undergo a CVA that would have seen the closure of 100 of its 355 stores as part of a restructuring plan.
According to reports those plans have now been put on hold and TPG have called in Deloitte to find a buyer for the company by the end of the month. It is believed that any new owner would also be likely to pursue a CVA in order to secure rent cuts and store closures as they continue the restructuring process.
The private equity firm acquired a majority stake in Poundworld in 2015 and is also the owner of Italian restaurant chain Prezzo, which announced it was to close 94 of its outlets across the UK last month.
The CVA proposal was backed by 88% of the company’s creditors, and will see the outlets close in April and May which will affect around 500 members of staff.
Retail Sector reached out but TPG Capital declined to comment.
