Poundworld to close 25 stores, axing 242 jobs

The beleaguered value chain, which filed notice of intention to appoint administrators last month, will cease trading the 25 affected stores (see box) on July 15.

The 242 affected staff will be made redundant on July 17.

Joint administrator Clare Boardman said: “Whilst we remain hopeful that a sale for part of the business can still happen, it has not been possible to sell the business as a whole, resulting in today’s announcement.

“We would like to thank all the employees for their continued support and commitment during this difficult time. We are keeping staff appraised of developments as they happen.”

The value retailer, which has 5,500 staff, is still seeking a buyer after its founder Chris Edwards retracted his offer to buy 186 of the stores and save 3,000 jobs yesterday.

Edwards, who founded the business in 1974 and sold it to its current owner TPG Capital for £150m in 2015, said his offer had not “been given the respect it deserves”.

Deloitte, which is handling Poundworld’s administration, is understood to be in early stage talks with Poundland founder Steve Smith about a potential rescue bid for the business.

A Poundworld spokeswoman said discussions with interested parties were ongoing “in respect of a significant number of stores and include the head office and distribution centre”.