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Poundworld to begin closing down sales

RBR Staff Writer Published 21 June 2018

British retailer chain Poundworld is all set to begin closing down sales, as its administrators find it difficult to search for new buyers.

The retailer, which went into administration earlier this month, has more than 300 stores employing 5,100 people.

The administrator Deloitte stated that no stores are closing down yet, as the search for a buyer still continues.

The news of closing down sales beginning at Poundworld was communicated by Deloitte to the retailer’s employees, but this does not necessarily mean that the stores will be closed, BBC reported.

As per the administrator, sales at Poundworld will continue until a buyer is found and to realise the stock whilst seeking to secure a sales of the business, either in whole or part.

It could result in shoppers getting discounts between 10 and 50% on everyday products including cupboard food and toiletries that are priced at £1, while there will be special discounts for some expensive products.

Poundworld’s another brand Bargain Buys also went into administration earlier this month, after talks with R Capital of buying the company had failed.

Deloitte had appointed retail restructuring consultant Hilco to help with managing of the stores.

The retailer is said to have faced the onslaught of online shopping, coupled with rising overhead expenditure and falling consumer confidence.

Poundworld is one of the several British retailers to have fallen in to administration including Marks & Spencer, House of Fraser and Mothercare. Maplin and Toys R Us collapsed into administration at the start of this year.

Sky News reported that the company has received more than one bid and that these are now being evaluated by administrators. The two bids involve different packages of stores and distribution centres. Hence, it could unlikely to find a buyer who will buy all the stores for the whole chain and it means that some store closures are inevitable.

Image: Poundworld store in Fulham, London. Photo: Courtesy of Edwardx/Wikipedia.org.