First Poundworld store closures to claim 242 jobs by…

First Poundworld store closures to claim 242 jobs by end of week

Poundworld will begin shutting shops this week. Photograph: Christopher Thomond for the Guardian

Poundworld, the discount retailer that went into administration last month, is to begin closing stores, with 25 shops due to shut by the weekend with the loss of nearly 250 jobs.

The closures come after administrators at Deloitte failed to find a buyer for the whole business, which employs more than 5,000 people in 335 stores across the UK.

The first round of store closures will result in 242 job losses; the latest sign of distress on Britain’s ailing high streets.

“Whilst we remain hopefully 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,” said Clare Boardman, joint administrator.

“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 last day of trading for the 25 stores affected will be Sunday 15 July, with redundancies taking effect two days later.

Poundworld is based in Normanton, near Wakefield in West Yorkshire.

Earlier this week the chain’s founder, Chris Edwards, ruled himself out of a rescue plan after his final offer for the business was rejected.

Edwards founded the business in Wakefield in 1974 before selling it to TPG Capital, a US private equity firm, for £150m in 2015.

Previous potential rescue buyouts from the private equity firms Rcapital and Alteri Partners also fell through after talks with TPG.

Poundworld is one of a string of retailers and restaurant chains that have collapsed or shrunk against a backdrop of higher costs and a consumer spending squeeze.

Earlier this year Maplin and Toys R Us collapsed into administration. Last month the department store chain House of Fraser announced plans to close 31 shops, more than half its UK portfolio, putting 6,000 jobs at risk.

Mothercare, New Look and Carpetright are also closing dozens of outlets after creditors approved company voluntary arrangements (CVAs), insolvency procedures that enable them to reduce rents and shut shops.

Restaurants including Prezzo, the burger chain Byron and Jamie’s Italian have also closed outlets using the same process.

Poundworld’s problems emerged in April when its owner said it was working on a proposal for a CVA, affecting about 100 stores.