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Poundworld falls into administration

By Chris Britcher

Discount store Poundworld has fallen into administration putting 5,000 jobs at risk.

It comes after a last-gasp rescue deal between the chain's owner, TPG Capital, and private equity firm Rcapital fell apart over the weekend.

The appointment of Deloitte as administrators leaves the future of five stores in the county hanging in the balance.

A number - or all - of Poundworld's stores could be sold
A number - or all - of Poundworld's stores could be sold

Poundworld has stores in Canterbury, Chatham, Dartford and Strood.

It also operates the Bargain Buys chain which has a store in Gravesend.

News of its perilous position emerged last week after it was revealed it faced calling in the administrators after a hoped for takeover by turn-around specialists Alteri Investors fell through.

Deloitte said there are no redundancies or store closures currently and has been working alongside the company in a bid to keep it afloat.

Poundworld in Dartford faces an uncertain future
Poundworld in Dartford faces an uncertain future
Takeover talks fell through at the weekend
Takeover talks fell through at the weekend

The stores suffered a major rise in multi-million pound losses last year - rising from £5.4m to £17.1m in 2016/17.

The news comes hot on the heels of House of Fraser revealing it was to close more than half of its UK stores in a bid to make it viable.

Founded in 1974, Poundworld was sold to US equity group TPG Capital for £150m in 2015.

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