Monday, June 11, 2018

News: Poundworld demise could lead to more empty properties in Rotherham

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Poundworld has entered administration after a potential buyer could not be secured for the Yorkshire-based discount chain.

Administrators from Deloitte said its 355 stores will continue to trade as normal with no redundancies at this time.

In Rotherham, Poundworld operates stores on Howard Street in Rotherham town centre and at Parkgate Shopping.

Poundworld Retail also operates as Bargain Buys, which has a store in the high profile premises on College Street, known by many as the previous home of national retailer, Marks & Spencer.

The administrators work to maximise realisations for stakeholders, in this case a private equity firm, either through an orderly sale of the business or a rescue of the company itself through a Company Voluntary Arrangement (CVA).

A pre-packaged sale has not be agreed although it was rumoured that company founder, Chris Edwards, could buy back his family firm.

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Clare Boardman, joint administrator, said: "The retail trading environment in the UK remains extremely challenging and Poundworld has been seeking to address this through a restructure of its business. Unfortunately, this has not been possible.

"We still believe a buyer can be found for the business or at least part of it and we are keeping staff appraised of developments as they happen. We thank all employees for their support at this difficult time."

Based in Normanton, the firm employs over 5,000 staff and was acquired by TPG Capital in 2015 for £150m when it was undergoing an aggressive expansion and store opening plan.

The property rented by Bargain Buys at 27 - 29 College Street was sold prior to an auction in December 2017.

With eye-catching half mock timber and decorative Art Nouveau style windows above, the ground floor is let to Poundworld Retail Limited until 2021. The retailer pays a rent of £118,000 per annum.

Poundworld website

Images: Fawcett Mead

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