Poundworld to disappear from high street following final closures

Thousands of jobs are at risk as administrators announce that all of the discount shop’s stores will close by 10 August.

Collapsed budget retailer Poundworld will disappear from the high street next month after its administrators announced the chain’s final set of store closures.

Administrators Deloitte has said all of Poundworld’s 335 stores will likely close by 10 August, affecting 2,339 staff.

The budget retailer will also close its warehouse and distribution network, as well as its head office in Normanton, West Yorkshire, leading to the loss of 300 jobs.

The announcement comes a day after administrators said 40 more Poundworld stores were to close later this month, leading to the loss of 531 jobs.

That was in addition to the 105 stores Deloitte said were to close earlier this month, affecting around 1,200 jobs, after the retail chain collapsed in June.

:: Administrators Deloitte hit back in row with Poundworld founder over rescue bid

Deloitte has been announcing tranches of store closures over the past two weeks after failing to find a buyer for the business.

The company’s 5,000 employees have been facing a bleak future since the firm went into administration.

Clare Boardman, joint administrator at Deloitte, said: “We would like to thank all the employees for their continued support and commitment during this difficult time.

“We are keeping staff appraised of developments as they happen.”

Deloitte said it is still in talks with some interested parties about selling parts of the remaining business, but hopes of saving a significant number of jobs has faded.

The administrator has turned down a bid from company founder Chris Edwards, who was looking to save a raft of stores and safeguard around 3,000 jobs.

Steven Smith, founder of rival Poundland, was also linked to a bid to rescue part of Poundworld from administration.

Poundworld’s collapse came amid decreasing footfall, rising costs and weak consumer confidence.


 

All Toys R Us stores in the UK will close in the next six weeks following the chain’s collapse into administration.

Attempts to find a buyer for the US retailer’s 100 stores in the UK have failed.

Twenty five stores have either closed in recent days or are due to shut by Thursday.

The collapse will put more than 3,000 people out of work as a dismal period for the retail sector continues.

Administrators Moorfields Advisory were appointed last month to start winding down the UK’s biggest toy retailer after it struggled to pay a £15m tax bill.

Simon Thomas, joint administrator, said Moorfields’ had negotiated with 120 different parties, most of them interested in buying up stock, and half a dozen looking at the whole business. But in the end Mr Thomas said the business had simply proved too hard to sell.

He told the BBC: “Any potential purchaser would have difficulty in sorting things out, for instance getting the rights to use the name, which is held by the American parent.

“In addition there are many services provided within the group by different subsidiaries, so if you take over one part you have to make alternative arrangements or negotiate new terms. Put all that together and becomes very complicated.”

Mr Thomas said remaining stock would be discounted further and “it should be an opportunity for people to buy some nice toys at a good price.”

Toys R Us closing saleImage copyrightGETTY IMAGES

The administrators said that Toys R Us had outstanding liabilities of around £300m, including a £70-90m pension fund shortfall.

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