Poundworld faces collapse after rescue talks fail
Image copyright PA Discount retailer Poundworld is expected to appoint administrators, putting 5,100 jobs at risk.
Talks with a potential buyer R Capital have collapsed meaning that the owner TPG felt it had no option but to put the company into administration.
Poundworld, which has 355 stores, and serves two million customers a week, also trades under the Bargain Buys brand name.
Deloitte is expected to be appointed to oversee the administration.
It will be hoping to sell the business as a going concern.
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Poundworld has been losing money for the past two years. Losses for the financial year 2016-17 were £17.1m, up from £5.4m the year before.
Like many retailers, Poundworld has been hit by falling consumer confidence, rising overheads, the weaker pound and the growth of online shopping.
Retailers including House of Fraser, Maplins, Toys 'R' Us, Mothercare, Carpetright plus a string of restaurant chains have hit the headlines this year because of trading trouble.
Poundworld, which has its headquarters in West Yorkshire, was formed in 2004, but it says it can trace its origins "back to 1974 and a market stall in Wakefield, West Yorkshire".
TPG, which bought a majority stake in Poundworld in 2015, also controls the restaurant chain Prezzo whose landlords and creditors agreed a restructuring last month.
A formal administration announcement will be made at 10am when the court opens.
