Poundworld is expected to appoint administrators today after last-ditch rescue talks collapsed leaving over 5,000 jobs at risk.
The discount retailer’s talks with potential buyer R Capital have collapsed only days after a deal with another investor, Alteri Investors, was also scrapped.
This has led to its owner’s American equity firm TPG capital to put the firm into administration. It is expected that Deloitte will be appointed as administrators.
Poundworld currently employs 5,300 saff across its 355 stores with sources saying it is hoped that some jobs will be retained if buyers can be found for parts of the business during the administration process, similarly to what happened during bargain off-licence retailer Conviviality’s administration.
TPG opted against a possible Company Voluntary Agreement (CVA) last month instead favouring to try and find a buyer for the company after it received expressions of interest.
A TPG spokesperson told Retail Sector: “This was a difficult decision for every party involved. We invested in Poundworld because of our belief in how the company serves its customers and the strength of its employees. Despite investing resources to strengthen the business, the decline in UK retail and changing consumer behaviour affected Poundworld significantly.”