News Poundworld launches CVA possibility affecting 100 stores

Discussion in 'Retail' started by Cody, Apr 27, 2018.

  1. Cody

    Cody

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    The discount retailer is seeking to enter into a CVA (Company Voluntary Arrangement) - following another bunch of retailers across the UK this year - which will see up to 100 stores close down. The retailer currently has 355 stores and employs over 5,500 staff, and whilst they're looking at placing any affected staff elsewhere across their stores, it is inevitable there will still be job losses.

    Similarly just like the other retailers that have entered into a CVA, Poundworld are looking at having their rent reduced at many of their stores, with the fall in the pound and low footfall being a major factor. However no deal has yet to be made. Competition against Poundland and Poundstretcher is also most likely another reason, however Poundstretcher and Poundland are too feeling the impacts of difficult trading throughout 2018.

    If the CVA does go ahead, they would appoint Deloitte, an audit, financial and risk management advisory group, to handle the proceedings. This would also be the UK's second chain owned by American private equity firm TPG Capital to undergo a CVA in such a short time frame.

    Poundworld and TPG have not commented on this as of yet.
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