Poundworld founder slams administrators for failing to secure rescue deal

Chris Edwards, the founder of Poundworld, has said that he still hopes to save more than half of the retail giant’s stores and safeguard approximately 3,000 jobs, but warns that administrator Deloitte must stop wasting time if they are to agree a rescue deal.

Chris started Poundworld on a Wakefield market stall in 1974 and built it into a high street brand with more than 300 stores across the UK.

TPG, the US private equity firm, acquired a majority stake in the business in 2015, but the company called in administrators Deloitte earlier this month.

Chirs has formed a deal to save 186 stores and revealed that despite contacting the administrators four weeks ago, his team were only given access to Poundworld’s Normanton headquarters in the last few days to assess stock levels.

In addition, they’ve just been granted permission to start communicating with Poundworld’s bankers at Santander.

Chris explained: “It’s really sad to see the demise of Poundworld which was a highly profitable and thriving business when we sold it, but it’s been mismanaged and lost its way. I can’t sit back and do nothing as so many people, lots of whom I know personally, risk losing their jobs.

“I firmly believe the firm could still be saved with a new management team, fresh stock and by turning the retailer back into a single price, traditional pound shop, rather than selling multi-price products.

“In my opinion, the whole administration process has been handled badly. I contacted the administrator four weeks ago and was just paid lip service until everyone else they were talking to about saving Poundworld had walked away.

“The process has taken so long that the shops are now holding closing down sales and selling stock that isn’t being replenished, so with every day that passes, the task of saving the business becomes more difficult and puts another nail in the coffin.”

He added: “It’s clear that the lack of action by the parties running the process has put jobs even more at risk but when I’ve raised concerns over the timescale, they say their priority is to creditors, so it will be interesting to see how much cash is left after the administrator’s fees and wages.

“In the last week we’ve been allowed to start speaking to Santander who are working with us to try and agree a deal, subject to our own due diligence. We’ve also now visited Poundworld’s headquarters and seen how little stock there is available, which would make things even more difficult if we takeover.

“It would be a race against time to replenish stock levels enough to stabilise Poundworld, and each day that passes means we’re moving further away from being able to save the business which is incredibly frustrating.

“However, although reviving the business will be a huge task, key members of our old management team are prepared to return and if we get it right we can save 3,000 jobs, but the clock’s ticking. If something doesn’t happen in the next few days, the business will go to the wall, which is so unnecessary when we have the desire and ability to save it.”

In response, a Deloitte spokesperson said: “The administrators continue to seek a buyer of all or parts of the business. To date no party has presented a credible and acceptable bid with accompanying confirmation of funding.

“We have provided guidance to indicate how a successful bid might be structured and have provided detailed information to assist bidders in an effort to help them wherever possible. In the interim, as one would expect in these circumstances, we are preparing for all eventualities as this process continues.”

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