Belfast Telegraph

Struggling Poundworld 'set to call in administrators'

Poundworld stores face closure
Poundworld stores face closure

By Helen Cahill

Poundworld is poised to announce its intention to appoint administrators putting thousands of jobs at risk.

The budget retailer has 15 stores in Northern Ireland and around 100 jobs here could be lost.

Poundworld, which employs over 5,000 people across the UK, is low on cash and is filing the notice because it will give the business protection from its creditors for two weeks.

Sources told the Press Association the notice will give the firm time to structure a deal, which could be undertaken through a pre-pack administration with private equity firm R Capital.

The administration will be handled by Poundworld's advisers Deloitte.

Poundworld, which is owned by TPG Capital, had previously rejected offers to sell through a pre-pack but all options are now being considered.

Management has so far failed to sell the retailer as a solvent business, after turnaround specialists Alteri Investors walked away from discussions this week.

Deloitte has been preparing contingency plans for an administration in the event of takeover talks collapsing.

Belfast Telegraph