Thousands of high street jobs in the United Kingdom may be at risk now that the US owner of Poundworld has dropped a rescue plan to bring the loss-making discount chain back from the brink, choosing to sell up instead.
TPG, an American private equity backer, is said to have directed Deloitte to look for a buyer for Poundworld, which employs approximately 5,500 staff across the United Kingdom, by April.
Sky News has reported that potential bidders were already contacted last Friday regarding the sale.
Poundworld is based in West Yorkshire. It also owns the Bargain Buys brand that was launched in 2004 and it serves over two million customers per week across the 355 shops of the chain.
Less than two weeks ago, it was revealed that the company was trying to seek for creditor approval to close 100 of its stores, putting hundreds of jobs at risk as part of a Company Voluntary Arrangement (CVA).
However, the decision to look for a buyer for the entire business could mean the end of the rescue plan.
Its Failure to strike a deal within weeks may result in the discount chain facing administration.
Sky News first reported the sale. One of its sources said that TPG decided to place the company up for sale after receiving interest from potential buyers.
Poundworld is just the most recent shop in the high street that is looming close to the brink. Last April, Carpetright, the flooring retailer that is under-pressure, placed 300 jobs at risk with plans to shut down 81 of its stores after creditors overwhelmingly supported its restructuring plans. The group is pushing through the said change as part of its own CVA.
House of Fraser also revealed that it is also mulling a CVA while New Look, a fashion chain, has already made some cuts through its restructuring process.