Irish Family Cleared To Acquire Struggling UK Retailer Poundworld
An Irish family has been given the green light to take over Poundworld after the struggling retailer has seen most of its stores closed by administrators, according to RTÉ.
The Henderson family, which once operated an unrelated discount chain in Ireland with the same name, is due to purchase the remaining Poundworld stores from administrators Deloitte, around 50 stores, and the brand name for an undisclosed fee.
Poundworld UK once operated over 300 stores across the UK and had plans to expand after a £150 million takeover by TPG, a US private equity group.
After increased competition in the discount retail sector established itself, topped by a rise in import costs and a devaluating sterling, the store was forced to restructure and close a number of outlets.
As talks with potential buyers dragged on, an increasing amount of stores were closed by its administrators Deloitte. Poundworld UK founder Chris Edwards criticised the bad management of the chain he sold in 2015, which ultimately led to its demise.
“The new owners made expensive decisions that the business couldn’t take,” Edwards said, according to Retail Gazette.
RTÉ reported that all Poundworld stores will still close tomorrow (10 August) as scheduled, but added that the Henderson’s will more than likely re-open stores in the foreseeable future.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.