In the most recent unfortunate news from the high street. 1,500 jobs at Poundworld is at risk after it was reported that the discount retailer is planning to close about 100 of its stores.
Poundworld is currently working on a proposal for a company voluntary arrangement (CVA) that is expected during the first half of next month.
The discount retailer has 355 stores and has approximately 5,500 employees. It joins a growing list of retailers in the United Kingdom that are having a hard time to cope up with the increasing costs.
High business rates and rent bills– as well as the shift to buying online and weak consumer confidence– have put pressure on many retailers. Poundworld has also been affected by a weaker pound since the Brexit referendum since a lot of its costs are in dollars.
The retailer is owned by TPG Capital, a US private equity firm and the same company that owns the Prezzo chain, which is also said to be closing around 100 restaurants through a CVA.
The decision of Poundworld to seek a deal with its landlord was first reported by Sky News. It follows a similar move that was made by Carpetright. Its creditors were scheduled to vote on the potential closure of about 90 stores on Thursday afternoon. Last February, Toys R Us went into administration, resulting in the closure of 100 stores and the loss of over 3,000 jobs. During the recent weeks, Maplin, an electronics retailer, and East, a fashion chain, have also collapsed, resulting in the loss of another 2,500 jobs.
Meanwhile, Robbie Feather, the new chief executive of the department store chain Fenwick, informed Retail Week magazine that it would have a consultation with a “significant number” of the store’s 2,200 employees over the coming months, as part of the business’ restructuring.