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Poundworld future in the balance after buyer pulls out

Poundworld future in the balance after buyer pulls out

The future of struggling discount retailer Poundworld is in the balance after the main contender to buy the chain pulled out talks.Alteri Investors, whose website says it specialises in "challenging retail situations", was in advanced talks with Poundworld's owner TPG.Sky News, which first reported Alteri's move, said TPG is talking to other potential buyers.About 100 of Poundworld's 355 shops were already under threat of closure. That restructuring was put on hold by TPG, a US private equity firm, after it received expressions of interest in the company.
A source told the BBC that Poundlworld's founder Chris Edwards was attempting to arrange a rescue proposal and is currently the only serious bidder in talks with TPG.Poundworld, which employs about 5,300 people, is among many stores on the High Street which have been struggling.Like many retailers, it has been hit by falling consumer confidence, rising overheads, the weaker pound and the growth of online shopping.The chain imports a lot of its stock and is having to pay more for it because of the fall in the value of the pound.
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Retailers Maplins, Toys 'R' Us, Mothercare, Carpetright, plus a string of restaurant chains, have hit the headlines this year because of trading trouble.Department store chain House of Fraser is close to unveiling a restructuring, which could come as early as Wednesday.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.
House of Fraser
Retailing
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