Poundworld faces collapse after talks fail

Takeover talks fell through at the weekend

Takeover talks fell through at the weekend

Deloitte is expected to be appointed to oversee the administration.

The discount retailer Poundworld is expected to appoint administrators, putting 5,100 jobs at risk.

Poundworld confirmed the announcement this morning after talks to secure a buyer for the retailer collapsed.

Poundworld's possible collapse comes after both Toys R Us and Maplin both fell into administration earlier this year.

Many of these have been struck this year as retailers have struggled with surging costs, rising business rates, competition from online rivals and a slowdown in consumer spending.

Deloitte's joint administrator, Clare Boardman, said: "The retail trading environment in the United Kingdom remains extremely challenging and Poundworld has been seeking to address this through a restructure of its business. Unfortunately, this has not been possible", Clare Boardman, joint administrator at Deloitte, said today.

Poundworld, which also trades under the name Bargain Buys, welcomes two million customers through its doors each week and competes with the likes of Poundland and Poundstretcher. The chain's founder Chris Edwards was also thought at one point to be assembling a bid. Losses for the financial year 2016-17 were £17.1m, up from £5.4m the year before.

Poundworld has around 350 stores across the United Kingdom, including branches at Bloxwich, the intu Merry Hill shopping centre in Brierley Hill, Hednesford, Lichfield, on the Reedswood Retail Park in Walsall, in Stafford and West Bromwich and two in Wolverhampton.

The news comes hot on the heels of House of Fraser revealing it was to close more than half of its United Kingdom stores in a bid to make it viable. No redundancies or store closures being announced at this time.

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