Search

Poundworld reported to be considering appointing administrators

PUBLISHED: 13:43 07 June 2018 | UPDATED: 14:12 07 June 2018

Poundworld is considering the appointment of administrators to give it protection from its creditors as cash reserves run low, according to the Press Association. Picture: Anna Gowthorpe/PA Wire

Poundworld is considering the appointment of administrators to give it protection from its creditors as cash reserves run low, according to the Press Association. Picture: Anna Gowthorpe/PA Wire

Budget retailer Poundworld is reportedly on the brink of announcing its intention to appoint administrators – a move which could put 5,300 jobs in jeopardy.

The firm’s cash reserves are running low and it is considering filing the notice as it would give the business two weeks’ protection from creditors, according to the Press Association (PA).

Sources told PA that the notice would give Poundworld time to put together a deal – which could be undertaken through a controversial pre-pack administration – with private equity firm R Capital, former owner of Little Chef.

The administration is expected to be handled by Poundworld’s advisors Deloitte.

The company has stores in Norwich’s Castle Mall, King’s Lynn, Ipswich, Wisbech, Braintree and Chelmsford.

READ MORE: The high street ‘must adapt’ as report warns of hundreds of Norfolk store closures

Poundworld, which is owned by TPG Captial, had previously rejected offers to sell through a pre-pack but all options are now being considered.

Management has so far failed to sell the retailer as a solvent business, after turnaround specialists Alteri Investors walked away from sales talks this week.

Deloitte has been preparing contingency plans for an administration in the event of talks collapsing.

The news comes on the same day that House of Fraser announced that it is to axe 31 stores, putting 6,000 jobs at risk.

Poundworld’s losses widened in 2016-17 to £17.1 million, from £5.4 million of losses the year before.

The retailer was hit with a £5.7 million charge for onerous leases, a provision retailers make when the cost of a lease is no longer covered by the income of the store.

Several retailers have shown significant financial distress this year, with both Maplin and Toys R Us disappearing from the high street.

Just this morning department store giant House of Fraser announced plans to close half of its UK stores, putting 6,000 jobs at risk.

It comes just two weeks Marks and Spencer said continuing high street pressures were behind its decision to close 100 stores by 2022.

Other news

16:00

An ex-teacher has been jailed for 10 years after engaging in sexual activity with two female pupils.

Figures have revealed the streets in Norfolk and Waveney which have access to both the fastest and the slowest broadband speeds, after a report has shown that more than a quarter of UK homes do not have fast enough broadband to cope with a family’s typical internet needs.

16:14

A photographer who has secured the front cover of a re-release of Stephen King’s ‘Dreamcatcher’ has used art to overcome her mental health struggles.

13:54

An incident which saw a dog chasing a deer through a nature reserve has sparked a warning to ‘irresponsible’ pet owners.

Most Read

16:00

An ex-teacher has been jailed for 10 years after engaging in sexual activity with two female pupils.

Read more
David Goodin
11:51

A doctors surgery has become the first in the Waveney area to prescribe parkrun to patients.

Read more
Lowestoft
13:54

An incident which saw a dog chasing a deer through a nature reserve has sparked a warning to ‘irresponsible’ pet owners.

Read more
Waveney District Council
Yesterday, 12:45

Witnesses are being sought after a man was verbally assaulted in Lowestoft.

Read more
Lowestoft Police

A primary school which was put in special measures last year has been praised for its progress by Ofsted inspectors.

Read more

Winter Wonderland

cover

Click here to view
the Autumn
Supplement

View

Local Weather

Partly Cloudy

Partly Cloudy

max temp: 6°C

min temp: 3°C

Hot Jobs

Show Job Lists

Digital Edition

cover

Enjoy the
Lowestoft Journal
e-edition today

Subscribe

Newsletter Sign Up

Lowestoft Journal weekly newsletter
Sign up to receive our regular email newsletter

Our Privacy Policy