Poundworld future in doubt as rescue plan is dropped

High street discounter Poundworld with 355 UK stores has been put up for sale by its owner, private equity firm TPG, according to the BBC.

As part of a restructuring plan, the chain had been planning to close around 100 branches, however, the process has now been put on hold by its US based owner, following expressions of interest in the company.

Poundworld currently employs around 5,500 people in the UK and is among many retailers on the High Street who have been struggling in recent months, hit by falling consumer confidence, rising overheads, the weaker pound and the rapid growth of online shopping. The business currently imports a large proportion of its range and is having to pay more for it because of the fall in the value of the pound.

The process of finding a buyer will happen quickly, the BBC understands, to allow any new buyer to continue the restructuring process if required.

Poundworld, with HQ in West Yorkshire, was formed in 2004, but says it can trace its origins "back to 1974 and a market stall in Wakefield, West Yorkshire".

Source: Insight DIY Team

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