Poundworld axes 100 jobs as administrators struggle to find a buyer
The retailer has made its first job cuts since falling into administration last week.
Poundworld has axed around 100 jobs from its head office as administrators struggle to find a buyer for the business.
The budget retailer, owned by private equity firm TPG Capital, collapsed last week, putting a total of 5,100 jobs at risk.
Poundworld’s administrator Deloitte has now been forced to make 98 staff redundant at the company’s head office in Normanton, Yorkshire, sources told the Press Association.
Deloitte asked for bids for Poundworld to be submitted by last Friday, but it is thought a buyer for the whole business may not materialise.
It is understood that any interested parties could pick up just sections of its store estate.
Poundworld was considering a sweeping store closure programme even ahead of its collapse.
The budget chain has 335 stores, which are still operational and continue to receive stock from the business’ distribution centre.
Announcing Poundworld’s administration last week, Deloitte said the firm was hit by falling footfall, rising costs and weak consumer confidence.
TPG said putting the business into administration was a “difficult decision”, and that the retailer was affected by a decline in the UK retail sector.
The news came just days after House of Fraser detailed its plans to shut 31 stores, affecting around 6,000 jobs.
Several retailers have collapsed into administration this year, with both Maplin and Toys R Us disappearing from the UK.
New Look, Mothercare, Carpetright and a string of restaurant brands have also been shutting stores in a bid to stay afloat.