Everything is a pound, as the saying goes, and it looks like Poundworld might join the long list of businesses that went bust and got sold off for the price of a pair of slippers. After news that it was on the brink of administration last week, the news is now official. Buyout talks have failed, leaving the discount chain no choice but to hand over to administrators - putting 5,100 jobs at risk.
The company had been given up to two weeks to sort itself out a buyer before creditors would step in, but after talks with R Capital broke down there was little that could be done. apparently the 355 Poundworld branches will continue to operate as normal, with no redundancies to announce right now. Administrators Deloitte said in a statement:
"Like many high street retailers, Poundworld has suffered from high product cost inflation, decreasing footfall, weaker consumer confidence and an increasingly competitive discount retail market."
Apparently the company had attempted a restructuring to prevent the ongoing losses, but that wasn't good enough to keep things running. Now, sadly, it joins the likes of Homebase, Maplin, Toys R Us, and all those other retailers that have had to shut down recently. Hopefully they can sort something out, and prevent all those people losing their jobs. If only to keep some competition around to stop people having to go to Poundland. [BBC News]
Image: S Martin/Flickr