The world of a UK discount retailer is about to get smaller, if the latest reports of planned store closures are to be believed.
TPG-owned Poundworld is said to be closing about a third of its outlets, no thanks to its suppliers losing credit insurance due to the British trader’s financial troubles. Supplier issues meant stock availability problems for Poundworld, whose company voluntary arrangement (CVA) is apparently being worked on.
Citing trade journal The Grocer, a Retail Gazette report said a total of 117 stores are set to be shuttered by the end of August. Poundworld has around 355 shops across the UK.
With guaranteed payments to suppliers gone, the discount chain found itself faced with a £6 million bill, according to the report. Trading last Christmas also did not meet expectations.
As for the other stores that will continue to operate, Poundworld is reportedly looking at seeking lower rent.
