Poundworld draws up store closure plan, putting around 1,500 jobs at risk
The retailer is putting together a restructuring plan similar to that chosen by New Look and Byron.
Discount chain Poundworld is pursuing a restructuring plan that could see it shut around a third of its stores, putting more than 1,500 jobs in doubt.
Poundworld is considering a so-called Company Voluntary Arrangement (CVA), an insolvency procedure which would allow it to slash its rents and close stores.
Under the plans, Poundworld could close 100 of its 355 stores.
Rising costs and a squeeze on consumer spending has forced several household names to pursue CVAs this year, including New Look, Byron, Prezzo and Carpetright.
Poundworld, which is owned by private equity firm TPG Capital, is expected to announce the terms of the CVA next month.
Landlords will then vote on whether to approve the proposal. All of the major CVAs proposed this year have been rubber-stamped by landlords.
Revealed: Prezzo CEO Jon Hendry pickup is leaving the casual dining chain following the CVA, with ex-Spirit CEO Karen Jones coming in as executive chairman— Dominic Walsh (@walshdominic) April 23, 2018
TPG Capital also owns restaurant chain Prezzo, which recently secured the backing of creditors for a Company Voluntary Arrangement (CVA). The plan will allow the Italian-themed chain to exit unprofitable branches and secure rent reductions.
A total of 94 of Prezzo’s 300 outlets will close, with around 500 jobs understood to be in the firing line, although many staff will be redeployed at other restaurants. The CVA proposal was backed by 88% of the creditors.