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Poundworld is looking to close 117 of its 355 UK stores by 31 August as part of its CVA proposal, it has been revealed.
The Grocer reports it has seen a document detailing the proposals, which suggest almost a third of its stores would be set to close and rent reductions planned for the remainder.
It is thought the closure plan was prompted by a below expectations Christmas trading period and stock availability issues due to the loss of credit insurance for suppliers.
Poundworld will now reportedly seek £15m in funding from Santander in order to finance its turnaround strategy following the CVA.
Retail Sector has approached Poundworld for comment.
The news comes only weeks after rumours circled that TPG Capital, the US owner of Poundworld, delayed plans for a CVA after receiving expressions of interest for a sale.
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.
UPDATE: 24/5/2018: 16:05 – A source close to the discussion has told Retail Sector that the document on which the Grocer based its report pre-dates later developments which were widely reported, including revelations that a sale of the business remained possible .
