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Latest high street casualty Poundworld could bin up to 100 stores
Budget retailer Poundworld's owners are drawing up plans to close more than a quarter of its 355 stores, placing hundreds of jobs at risk.
The west Yorkshire based retail firm is understood to be considering entering a Company Voluntary Arrangement (CVA), an agreement that would allow it to close loss making stores and save money on rental payments.
Other struggling high street staples such as Toys R Us, Carpetright and New Look have previously pursued CVA's to protect their businesses.
Poundworld employs approximately 5,500 people at its 355 stores and would seek to redeploy some staff from closing shops, but losses appear unavoidable.
The company slipped to a £17.1m pre-tax loss for the 12 months preceding 31 March as it felt the effects of restructuring costs and impairments on fixed assets and leases.
If it does proceed with the CVA, which would be managed by Deloitte, Poundworld would be the second company owned by American private equity firm TPG Capital to resort to such a measure following Prezzo's recent CVA.
It is understood that TPG Capital had recently been in discussions with Poundworld regarding a possible cash injection of £40m.