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Poundworld axes hundreds more jobs as it closes HQ, warehouse and stores

The budget chain has been announcing rafts of store closures in recent weeks.

Poundworld is axing hundreds more jobs as it closes its head office, warehouse operations and another batch of stores.

The budget retailer is closing its warehouse and distribution network, the Press Association understands, alongside its head office in Normanton, West Yorkshire, leading to the loss of 300 jobs.

Administrators at Deloitte are also informing staff of another batch of store closures, having announced the closure of 145 already.

Poundworld fell into administration on June 11, putting more than 5,100 jobs at risk across its 335-store portfolio.

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

On Tuesday, Deloitte said it was still in discussions with interested parties for the potential sale of “part or parts of the remaining business”.

The latest job losses come as hopes for a rescue fade.

Deloitte 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.

The founder of rival Poundland, Steven Smith, has also been linked to a bid to salvage part of Poundworld out of administration.

The collapse came amid decreasing footfall, rising costs and weak consumer confidence.

The budget retail chain, formerly owned by TPG Capital, is one of a number of retailers to call in administrators this year, with Toys R Us and Maplin disappearing from UK high streets.

The Gaucho restaurant group also fell into administration on Thursday, with the Cau chain being closed immediately, leading to the loss of 540 jobs.

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