Over 5000 jobs at risk as Poundworld goes into administration

The high street discount retailer Poundworld has filed for administration after a potential buyer fell through, putting over 5000 jobs at risk.

The shopworkers’ union USDAW urged administrators to seek another buyer, and lamented the fact that the failure of Poundworld to recognise the union had prevented any cooperation in the run up to administration. National Officer Dave Gill said:

“Regrettably Poundworld do not recognise Usdaw and they have not been keeping us informed of developments. We are hopeful that the administrators will engage with us to help save jobs. We welcome Deloitte’s initial approach for Poundworld to continue to trade while a buyer for all or part of the business is sought and that there are no redundancies or store closures at this time.”

“Usdaw is providing the support and advice our members require at this very difficult time and we expect the administrators to ensure all staff are treated with dignity and are fully consulted.”

Labour pointed out that this is the latest in a long line of well known high street brands collapsing in recent months, as footfall subsides. Toys R’ Us and Maplins went into administration earlier this year, while New Look and House of Fraser have downsized. Hospitality has also suffered - both Jamie’s Italian and Prezzo have also crumbled.

Rebecca Long-Bailey MP, Shadow Business Secretary commenting on the news that Poundworld has entered administration, said:

“Yet another store in trouble and thousands of workers at risk of losing their jobs.

“The Tories are too distracted from Brexit infighting to tackle the rapid decline of our high streets and town centres.

“Labour will support retail by placing it at the heart of our industrial strategy and radically reform the business rates system. It’s time for the Tories to step up to the challenge of rescuing our high streets.”

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