Poundworld To Close a Third of Stores and Cut Jobs
- Estimated 100 stores will close
- 1,500 jobs on the line
- Latest in a string of high street stores to make closures
Discount chain Poundworld is the latest high street brand to face difficulties.
It is now looking to find a restructuring plan to stay afloat, which would see around a third of its stores close.
- Mothercare is Facing Bankruptcy
- Homebase Closing up to 40 Stores
- CarpetRight to Close Stores and Cut Jobs
Poundworld is considering a Company Voluntary Arrangement, which is an insolvency procedure which would allow it to slash rents and close stores- the same as New Look has recently done.
Under the plans, Poundworld could close 100 of its 355 stores, which would put 1,500 jobs in jeopardy.
Rising costs, a squeeze on consumer spending, and preference for online shopping has forced several household names to find CVAs, as well as Maplin and Toys R Us going into administration.
Poundworld is expected to announce the terms of the CVA next month, and landlords will then vote on whether to approve the proposal.
Poundworld is owned by TPG Capital, the same company that owns restaurant chain Prezzo, which also recently got a CVA and was forced to close outlets.
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