Own account operator Poundworld Retail has appointed administrators after talks with a potential buyer collapsed.
The retailer, which has a fleet of 75 vehicles and 140 trailers delivering to 355 stores, has been struggling against the falling value of sterling, weak consumer confidence and rising competition in the discount retail sector.
Poundworld Retail was in talks with potential buyer R Capital but after negotiations ground to a halt last week, the retailer appointed Deloitte’s restructuring partners Daniel Butters and Clare Boardman as joint administrators.
The administrators said Poundworld will continue to trade whilst a buyer for all or part of the business is sought, with no redundancies or store closures planned at this stage.
Boardman added: “The retail trading environment in the UK remains extremely challenging and Poundworld has been seeking to address this through a restructure of its business. Unfortunately, this has not been possible.
“We still believe a buyer can be found for the business or at least part of it and we are keeping staff appraised of developments as they happen. We thank all employees for their support at this difficult time.”
The administrators declined to comment on the future of the firm’s transport division.
Second image: PA Images
