News: All Poundworld stores set to close

All Poundworld stores in Rotherham will have closed by August 10 unless the administrator of the failed retailer secures an eleventh hour deal for the remaining stores.

Rothbiz reported last month that administrators from Deloitte had been appointed by the Yorkshire-based discount retailer which was suffering in extremely challenging trading conditions.

Administrators have so far failed to secure a deal to save the business through a sale or a rescue of the company itself through a Company Voluntary Arrangement (CVA).

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Poundworld Retail operated 355 stores in the UK. In Rotherham, Poundworld operated 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.

Announcements confirmed specific store closures as a deal appeared more and more unlikely. The town centre store closed last week and the Parkgate store was due to close this week.

In a recent announcement, Deloitte said that the remainder of the estate would shut their doors by August 10 if no buyer for the chain is found.

Clare Boardman, joint administrator at Deloitte, said: "We would like to thank all the employees for their continued support and commitment during this difficult time. We are keeping staff appraised of developments as they happen."

The Financial Times reported that Poundworld founder Chris Edwards and Steve Smith, founder of rival Poundland, have been in talks regarding a takeover.

Based in Normanton, the firm employed 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.

Images: Google Maps

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

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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News: Bargain Buys in Rotherham town centre

Poundworld Retail has opened a branch of its multiprice format store, Bargain Buys in Rotherham town centre.

Bargain Buys was launched in 2013 by the same father and son team who brought retail giant Poundworld to the high street. With prices not fixed to £1, the stores aim to provide everyday essentials at outstanding value and offers over 8,000 branded products.

Established in 1974 by current owner, Chris Edwards, the retail chain was originally branded Everything's a £1 before the introduction of the Poundworld brand in 2004. Over the past 40 years, the business has adapted to changing retail markets, successfully maintaining the £1 price point through many economic cycles.

The Yorkshire-based business launched its first multiprice retail format, Discount UK in 2010 and began rebranding three years later. There are around 40 stores in the UK, with plans for 50 more Bargain Buys stores over the next five years.

The Rotherham store is on College Street, having recently rebranded from Discount UK.

Now employing around 5,000 staff and with an annual turnover of £340m, Poundworld has over 240 stores across the UK and has grown to be the third-largest single price point retailer in the UK, with strong aspirations for growth. Its business plan includes opening between 40-50 new stores per year over the next three years, as well as operating more distribution depots.

For the year to March 2014, pre-tax profit was up to £5m compared to £1.9m in the previous year and Poundworld's turnover was up 18% to £345.3m, while like-for-like sales jumped 2.6%.

Discount UK caused a stir in 2011 when it was revealed to be taking over the former Marks & Spencer's retail unit on College Street in Rotherham. The retailer took the whole of the 23,000 sq ft, two floor property and uses the ground floor for retail. The building was last occupied by Hitchens.

Bargain Buys website

Images: Bargain Buys / Facebook

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