Poundworld axes 100 jobs one week after falling into administration

Retail sector in crisis with thousands of high street jobs lost since beginning of the year

Caitlin Morrison@citycait
Tuesday 19 June 2018 11:05
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The retailer is continuing to trade as normal while a new buyer is sought
The retailer is continuing to trade as normal while a new buyer is sought

Poundworld has cut 100 head office roles one week after falling into administration.

The discount retailer collapsed after last-ditch rescue talks between its owner, TPG Capital, and prospective buyer Rcapital fell apart, putting more than 5,000 jobs at risk.

Deloitte was appointed as administrator, and the audit firm said Poundworld would continue to trade while a buyer for all or part of the business is sought.

However, administrators have now been forced to cut almost 100 jobs at the company’s head office in Normanton, Yorkshire.

Poundworld is the latest victim of the growing crisis engulfing the British high street. Both Maplin and Toys R Us have collapsed into administration since the beginning of the year.

In addition, House of Fraser recently announced that it would shut 31 of its 59 branches, because the cost of running its store network had become "unsustainable", and Mothercare said it would close 50 stores.

Meanwhile, on Tuesday Debenhams issued its third profit warning of 2018, as the department store chain admitted it was struggling to keep up with competitors.

Additional reporting by newswires

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