Poundworld to close up to 100 stores putting 1,500 jobs at risk

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Low cost chain Poundworld is pursuing a restructuring plan that might see it shut round a 3rd of its shops, placing greater than 1,500 jobs unsure.

Poundworld is contemplating a so-called Firm Voluntary Association (CVA), an insolvency process which might enable it to slash its rents and shut shops.

Beneath the plans, Poundworld might shut 100 of its 355 shops.

Rising prices and a squeeze on shopper spending has pressured a number of family names to pursue CVAs this yr, together with New Look, Byron, Prezzo and Carpetright.

Poundworld, which is owned by personal fairness agency TPG Capital, is anticipated to announce the phrases of the CVA subsequent month.

Landlords will then vote on whether or not to approve the proposal. The entire main CVAs proposed this yr have been rubber-stamped by landlords.

TPG Capital additionally owns restaurant chain Prezzo, which not too long ago secured the backing of collectors for a Firm Voluntary Association (CVA). The plan will enable the Italian-themed chain to exit unprofitable branches and safe hire reductions.

A complete of 94 of Prezzo’s 300 shops will shut, with round 500 jobs understood to be within the firing line, though many employees will likely be redeployed at different eating places. The CVA proposal was backed by 88% of the collectors.

PA

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