Concern for future of Poundworld stores

Poundworld
Poundworld

Poundworld in Craigavon is one of 12 stores in NI at risk after the firm was put into administration today (Monday).

Staff at the Rushmere store were told not to speak to the press and directed calls to the administrator Deloitte.

When asked they would not reveal how many staff at the store were affected by any possible closure.

Other stores at risk include four in Belfast and others in Newtownabbey, Newtownards, Londonderry, Armagh, Omagh, Bangor, and Cookstown. It is understood 188 employees in total in Northern Ireland are affected with branch numbers ranging from 10 to 20.

Deloittte confirmed that it has been appointed after talks with potential buyer R Capital broke down over the weekend.

The administrators said the chain will continue to trade while a buyer for all or part of the business is sought. There are no redundancies or store closures at this time.

Deloitte said Poundworld had suffered from high product cost inflation, decreasing footfall, weaker consumer confidence and an increasingly competitive discount retail market.

“The retail trading environment in the UK remains extremely challenging and Poundworld has been seeking to address this through a restructure of its business,” said joint administrator, Clare Boardman.

“Unfortunately, this has not been possible. We still believe a buyer can be found.”

Retail NI Chief Executive Glyn Roberts said: “Our immediate thoughts are with the Poundworld staff and their families across the stores in Northern Ireland”

“The discount retail market has become increasingly crowded and competitive in recent years which is clearly a central reason as to why Poundworld has struggled.”