Poundworld could close 350 stores as it goes into administration

Poundworld looks set to go into administration, putting 5,100 jobs at risk.

The budget retailer (which is owned by TPG Capital) has around 350 stores which are now in jeopardy after a deal to sell the business could not be struck.

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Poundworld's losses increased to £17.1 million between 2016 and 2017, compared to £5.4 million of losses the year before.

The fall of the high street

Poundworld is not the only familiar high street chain to fall into administration in recent months. Toys R Us and Maplin both followed a similar path earlier this year, and House of Fraser announced its plans to shut 31 stores (affecting around 6,000 jobs) just days ago.

Poundworld may suffer the same fate as fellow retailers Toys R Us and Maplin (Photo: Shutterstock)

House of Fraser is currently seeking landlord approval for the restructuring plan, which is a form of insolvency known as a Company Voluntary Agreement (CVA).

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Struggling to survive

A raft of CVAs have been struck in recent months as retailers struggle amid surging costs, rising business rates, competition from online rivals and a slowdown in consumer spending.

Other retailers undertaking CVAs in a bid to keep trading include New Look, Mothercare and Carpetright.

Restaurant businesses have also been seeking to cut their costs with store closure programmes, with Carluccio's, Byron and Prezzo all pushing through CVAs this year.