Job loss fears as Poundworld enters administration

Poundworld has branches on Howard Street, Rotherham, and Parkgate Retail Centre.

Deloitte was appointed as administrators today (Monday) putting 5,100 jobs nationwide at risk.

It has been reported that talks with a potential buyer, R Capital, have collapsed, leaving Poundworld with no other option.

A spokesperson for Deloitte said the store would continue to trade while a buyer for all or part of the business was sought.

“There are no redundancies or store closures at this time,” said the spokesperson.

“Like many high street retailers, Poundworld has suffered from high product cost inflation, decreasing footfall, weaker consumer confidence and an increasingly competitive discount retail market.”

The spokesperson said each branch employed around 12 to 15 people but was not able to confirm how many people were employed at its Rotherham branches.

Joint administrator Clare Boardman said: “The retail trading environment in the UK remains extremely challenging and Poundworld has been seeking to address this through a restructure of its business.

“Unfortunately, this has not been possible.

“We still believe a buyer can be found for the business or at least part of it and we are keeping staff appraised of developments as they happen.

“We thank all employees for their support at this difficult time.”