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'Closing down' sales start at Poundworld stores

PUBLISHED: 15:54 20 June 2018 | UPDATED: 15:54 20 June 2018

Poundworld has starting 'closing down' sales at its stores and brought in restructuring consultants Picture: Anna Gowthorpe/PA Wire

Poundworld has starting 'closing down' sales at its stores and brought in restructuring consultants Picture: Anna Gowthorpe/PA Wire

Retailer Poundworld has started a “closing down” sale and drafted in consultants to kick-start stock clearances.

Administrators at Deloitte have informed staff that Hilco will “help advise and support” them during the process.

It comes after almost 100 redundancies were made at Poundworld’s head office this week.

In a note to staff, seen by the Press Association, the company said: “It has been decided that stores are to commence ‘closing down’ sales. For clarity, this does not mean that store will definitely close.

“The administrators’ strategy remains the same – to continue to trade the business in order to realise the stock whilst seeking to secure a sales of the business, either in whole or part.

“Please be assured that the Hilco team are very experienced retail consultants who, in many cases, have been through this process themselves.”

Hilco is considered a retail restructuring specialist. It is also buying Homebase.

Deloitte is still considering bids for Poundworld’s assets, including sections of its store estate.

The retailer went into administration last week putting 5,000 jobs at risk.

The budget chain has 335 stores, including in Norwich, King’s Lynn, Wisbech and Ipswich, which are still operational and continue to receive stock from its distribution centre.

Announcing Poundworld’s administration last week, Deloitte said the firm was hit by falling footfall, rising costs and weak consumer confidence.

The news came just days after House of Fraser detailed its plans to shut 31 stores, affecting around 6,000 jobs.

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