Based Poundworld crashes into administration more than 5,000 jobs at risk

Takeover talks fell through at the weekend

Takeover talks fell through at the weekend

Poundworld - which also trades under the name Bargain Buys in locations including Stevenage - appointed administrators today after talks with a potential buyer collapsed, leaving no other option.

The business operates from 335 stores and its head office and distribution centre in Normanton, near Wakefield in West Yorkshire and employs about 5,100 people.

Deloitte, which has been co-ordinating efforts to find a solvent deal for the business, is expected to oversee the administration of Poundworld.

The news came just days after House of Fraser detailed its plans to shut 31 stores, affecting around 6,000 jobs.

Like many retailers, Poundworld has been hit by falling consumer confidence, rising overheads, the weaker pound and the growth of online shopping.

"We 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".

The appointment of Deloitte as administrators leaves the future of five stores in the county hanging in the balance.

The demise of Poundworld follows the collapse into administration earlier this year of both high street electronics firm Maplin and Toys R Us.

'Unfortunately, this has not been possible.

The company, which has 335 shops and sells everything from flip-flops to deodorant and baked beans, racked up losses of £17.1million previous year.

A spokesman for TPG said putting the business into administration was a "difficult decision".

"Despite investing resources to strengthen the business, the decline in United Kingdom retail and changing consumer behaviour affected Poundworld significantly".

Other retailers undertaking CVAs in a bid to keep trading include New Look, Mothercare and Carpetright.

'Even if Poundworld is lucky enough to be rescued by a white knight, it's still likely that a large proportion of its store portfolio would close for good, meaning yet more empty retail space gathering dust across the High Street'.

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