Poundworld goes into administration

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Garth
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PostPoundworld goes into administration
by Garth » Mon Jun 11, 2018 12:43 pm

Poundworld enters administration after rescue talks fail

Discount retailer Poundworld has appointed administrators, putting 5,100 jobs at risk.

The move came after talks with a potential buyer, R Capital, collapsed leaving Poundworld with no option other than administration.

Poundworld, which serves two million customers a week from 355 stores, also trades under the Bargain Buys name.

Administrators Deloitte stress the stores will continue to trade as normal with no redundancies at this time.

It said in a statement: "Like many high street retailers, Poundworld has suffered from high product cost inflation, decreasing footfall, weaker consumer confidence and an increasingly competitive discount retail market.

Clare Boardman, joint administrator at Deloitte, 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."

She said Deloitte believed a buyer could be found for the business, or at least part of it.

A spokesperson for Poundworld''s owner, TPG said filing for administration had been "a difficult decision".

"Despite investing resources to strengthen the business, the decline in UK retail and changing consumer behaviour affected Poundworld significantly," they added.

Poundworld has been losing money for the past two years. Losses for the financial year 2016-17 were £17.1m, up from £5.4m the year before.

It's the latest High Street retailer to run into trouble.

Just last week, department store chain House of Fraser said it would close 31 of its 59 shops, citing the need to adapt to "fundamental change" in the retail industry.

A combination of falling consumer confidence, rising overheads, the weaker pound and the growth of online shopping have made it tough for traditional retailers.

Electronics chain Maplin and toy chain Toys 'R' Us both collapsed into administration earlier this year.

Other High Street chains such as Mothercare and Carpetright have been forced to close stores in order to survive.

Restaurant chains such as Italian chain Carluccio's, pizza restaurant Prezzo and burger chain Byron have also had to close stores as they battle a triple-whammy of falling trade, higher costs and increased competition.

https://www.bbc.co.uk/news/business-44436435

Seems like the high street is really struggling this year.

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Preezy
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PostRe: Poundworld goes into administration
by Preezy » Mon Jun 11, 2018 12:54 pm

CLOSING DOWN SALE: EVERYTHING (still) ONE POUND!

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lex-man
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PostRe: Poundworld goes into administration
by lex-man » Mon Jun 11, 2018 1:06 pm

I would have thought the lower end retails would have been better shielded from what's happening in the high street, although I guess Poundworld couldn't deal with inflation.

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Jenuall
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PostRe: Poundworld goes into administration
by Jenuall » Mon Jun 11, 2018 1:10 pm

PoundWORLD? I've only ever heard of PoundLAND!

This makes me think I've been short changed and like Disney Land is to Disney World I've only experienced the bargain basement version of the bargain basement high street store!

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<]:^D
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PostRe: Poundworld goes into administration
by <]:^D » Mon Jun 11, 2018 1:15 pm

Preezy wrote:CLOSING DOWN SALE: EVERYTHING (still) ONE POUND!

:lol:

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KK
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PostRe: Poundworld goes into administration
by KK » Mon Jun 11, 2018 1:15 pm

This shop featured in a documentary series that ran for about 2 years on BBC1. At the time it was run by this nice enough bloke, and his Mum would always pop into the office every day.

They opened a massive Poundworld in Sutton only a few years ago:

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Death's Head
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PostRe: Poundworld goes into administration
by Death's Head » Mon Jun 11, 2018 1:16 pm

We need a "Retail death thread" to discuss companies who have or are about to go under. House of Fraser are having a difficult time and Debenhams, although with more cash seem to be getting to the same place.

Then we have M&S struggling. I think there is no or a very limited future for department stores, or maybe if a few fall the remaining ones can survive due to lack of competition.

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Hyperion
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PostRe: Poundworld goes into administration
by Hyperion » Mon Jun 11, 2018 1:25 pm

I read this as Popworld and was mightily relieved

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Lotus
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PostRe: Poundworld goes into administration
by Lotus » Mon Jun 11, 2018 2:02 pm

There are so many budget stores like this that they kinda blur into one. There's surely not room for all of them though so it's no surprise to see this one go under.

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Gemini73
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PostRe: Poundworld goes into administration
by Gemini73 » Mon Jun 11, 2018 2:04 pm

We've a House of Fraser opening in Cheltenham, even in light of the company hitting hard times with plans to close down over 40 of their stores.

“But I don't want to go among mad people,” Alice remarked. “Oh, you can't help that,” said the Cat: “we're all mad here".
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Peter Crisp
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PostRe: Poundworld goes into administration
by Peter Crisp » Mon Jun 11, 2018 2:11 pm

Administrators are the worst.
They come in to a failing company and charge a strawberry floating fortune just for turning up to tell you a load of old bollocks and then get paid even more when the company goes under due to the money they now owe the administrators for doing strawberry float all.

I've been through the process twice and been made redundant twice and I feel sorry for the people involved in the whole sorry mess.

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Vermilion
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PostRe: Poundworld goes into administration
by Vermilion » Mon Jun 11, 2018 2:20 pm

Gemini73 wrote:We've a House of Fraser opening in Cheltenham, even in light of the company hitting hard times with plans to close down over 40 of their stores.


I thought that department store with Paperchase inside was already a House of Fraser. :?

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PostRe: Poundworld goes into administration
by Gemini73 » Mon Jun 11, 2018 2:37 pm

Vermilion wrote:
Gemini73 wrote:We've a House of Fraser opening in Cheltenham, even in light of the company hitting hard times with plans to close down over 40 of their stores.


I thought that department store with Paperchase inside was already a House of Fraser. :?


You are right, my bad. A John Lewis is opening.

Well just goes to show that all these department stores look the same! :slol:

“But I don't want to go among mad people,” Alice remarked. “Oh, you can't help that,” said the Cat: “we're all mad here".
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Death's Head
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PostRe: RE: Re: Poundworld goes into administration
by Death's Head » Mon Jun 11, 2018 2:38 pm

Gemini73 wrote:We've a House of Fraser opening in Cheltenham, even in light of the company hitting hard times with plans to close down over 40 of their stores.
They are closing 30 our of 59, including their flagship store in London. People like you with your #falsenews are responsible for their decline.

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PostRe: Poundworld goes into administration
by Gemini73 » Mon Jun 11, 2018 2:49 pm

:simper:

“But I don't want to go among mad people,” Alice remarked. “Oh, you can't help that,” said the Cat: “we're all mad here".
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Vermilion
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PostRe: Poundworld goes into administration
by Vermilion » Mon Jun 11, 2018 2:54 pm

Gemini73 wrote:You are right, my bad. A John Lewis is opening.


Yeah, i saw that one under construction, they're putting it in where there used to be a small mall which had HMV by the entrance.

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No:1 Final Fantasy Fan
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PostRe: Poundworld goes into administration
by No:1 Final Fantasy Fan » Mon Jun 11, 2018 3:26 pm

I never shop at House of Fraser because their stores are so dark and feel so gloomy.
Much prefer their competition like Selfridges or Harvey’s Nichols.

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Preezy
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PostRe: Poundworld goes into administration
by Preezy » Mon Jun 11, 2018 3:40 pm

All shall crumble before the might of John Lewis.

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Gemini73
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PostRe: Poundworld goes into administration
by Gemini73 » Mon Jun 11, 2018 3:41 pm

Vermilion wrote:
Gemini73 wrote:You are right, my bad. A John Lewis is opening.


Yeah, i saw that one under construction, they're putting it in where there used to be a small mall which had HMV by the entrance.


Beechwood Shopping Centre. Was a nice arcade with a pleasant water feature in the centre, but high rates saw pretty much all the indie stores,(including an indie game store I co-ran, although I left about a year before it closed its doors) and Debenhams eventually close. John Lewis stepped in at that point.

“But I don't want to go among mad people,” Alice remarked. “Oh, you can't help that,” said the Cat: “we're all mad here".
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Return_of_the_STAR
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PostRe: Poundworld goes into administration
by Return_of_the_STAR » Mon Jun 11, 2018 4:27 pm

A lot of the stores who are struggling at the moment or have gone under recently have been due to poor financial management and taking in far too much debt in order to expand and/or revamp their stores. House of Fraser is a perfect example of this. Their actual business is profitable and is only making loses due to the debt repayments which were taken on for this reason. I would imagine Poundworld is similar, however I’ve not read about it, as they’ve grown their number of stores massively over the past few years.

Toys r us met a premature death in my eyes due to paying out ridiculous dividends and bonuses/pay to the higher levels of management. They kept hold of large warehouse stores that were losing money and took too long to move to a model of smaller stores and sell a larger range online, this was starting to work but they ran out of money before it could turn their business around.

The worst retailers are those that previously owned a number of the buildings that their stores where in, they then sold off the buildings and paid rent to the new landlords. They spent the money on revamps which failed to make any changes to their Sales figures and were left with high rents that have turned many previously profitable stores into lose makers. There are a number of large companies that have done this however the names completely escape me at present.

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