Administrators to collapsed discount retailer Poundworld are to close 25 stores, resulting in 242 job losses.
The news comes as hopes for a rescue of the beleaguered retailer fade, with July 15 already set to be the last day of trading for affected stores.
Poundworld went bust last month and Deloitte, which is overseeing the process, has been attempting to secure a buyer for the business ever since.
Administrators to collapsed discount retailer Poundworld are to close 25 stores
But a memo to staff penned by the professional services firm said: ‘As previously advised, the administrators have been preparing contingency plans in the event that we are not able to deliver a sale of the business as a whole.
‘These plans have been continuing and it is with regret that the administrators have taken the decision to effect an organised wind down of 25 stores, starting today.’
Poundworld, which was formerly owned by private equity firm TPG Capital, has 335 stores and employs around 5,100 people.
Deloitte last week turned down a bid for Poundworld from its founder, Chris Edwards, who was looking to save a raft of stores and safeguard around 3,000 jobs.
Daniel Butters and Clare Boardman at Deloitte have already made 100 people redundant at Poundworld’s head office in Normanton, West Yorkshire.
Yesterday it was revealed that the founder of rival Poundland, Steven Smith, is in early-stage talks about a bid to salvage part of Poundworld out of administration.
The news comes as hopes for a rescue of the beleaguered retailer fade, with July 15 already set to be the last day of trading for affected stores
Poundworld fell into administration on June 11 and the retail chain has started closing down sales.
Mr Smith sold Poundland to Advent International in 2002 and is now a retail consultant and speaker.
His son, Ashley Smith, launched Poundshop.com in a bid to replicate his father’s success in the online arena.
Mr Edwards said last week that he was ‘shocked and surprised’ that his bid for around 180 of Poundworld’s stores was rejected by Deloitte.
‘I’ve made a substantial and credible offer, which is the best offer we can put forward, but in my opinion it hasn’t been given the respect it deserves,’ he said.
‘Although it was close to what the administrator wants, we’ve now had written confirmation that it’s not high enough, which I’m shocked and surprised at, considering we were going to save 3,000 jobs.’