Store closing signs in the window of Poundworld

Bargains galore as stricken High Street retailer’s closure advertised

Cut price retailer Poundworld has placed “store closing” signs in the windows of its outlet in Canterbury High Street.

It joins others across the UK which are also advertised as closing just weeks after the firm announced it was going into administration.

Staff have not yet been given an exact date for a closure.

However, customers will find numerous bargains in store as Poundworld tries to shed stock.

It means many prices will be lower than the pound which gives the store its name.

The Poundworld store in Canterbury High Street

Adminstrator Deloitte is overseeing the company’s financial affairs, but insisted that closure signs did not necessarily mean that stores would actually close.

Deloitte says Poundworld’s trading had been “difficult for a substantial period of time”.

It went on: “For clarity this does not mean that stores will definitely close.

“The administrators’ strategy remains the same: to continue to trade the business in order to realise the stock whilst seeking to secure a sale of the business either in whole or part.”

Poundworld has 355 stores and employs 5,100 people. Its losses rose to £17 million in the year 2016-17.

It has had a presence in Canterbury since 2014. It also has stores in Chatham, Strood, Dartford and Gravesend.

Poundworld went into administration on June 11 after talks with potential buyer R Capital failed.

Like many other High Street business, it has suffered in the face of reduced consumer confidence, rising overheads and the threat of online shopping.

But unlike other shops, it is hampered by its price structure so that profits are minimal when products are sold for a pound. A week pound has also helped to push up costs.

Deloitte has already made 98 redundant at Poundworld’s Yorkshire headquarters.

One response to “Bargains galore as stricken High Street retailer’s closure advertised”

  1. rory kehoe says:

    I was rarely a Poundland customer buy I’m sorry for the staff at this shop, as they face their inevitable redundancies, probably at statutory minimum levels.
    As administrators, Deloitte is obliged to make the most of Poundland’s assets, which includes
    all the inventory on shop shelves and in warehouses. At a pound a pop (in happier times) it’s hard to see how many punters are going to make significant savings at 10% off this and 20% that. The odd ten and twenty pence saved will hardly cover their bus fare!
    The problem is though, that if stock is sold at a loss, then that further limits Deloitte’s chances of putting hard cash into the staff redundancy pot.
    Looking at this another way, I feel even sorrier for the staff. Poundland did what it could. It bought ordinary items and sold them at minimal profit levels, in basic shops, with minimal staff. What more could you expect for a quid? On any profits, Poundland paid UK Corporation Tax and of course, it divvied up for staff National Insurance. The company’s employees paid Income Tax and National Insurance and presumably had something left over to spend, which boosts the UK economy.
    By contrast, online suppliers (most of which are not UK-based) pay little or no Corporation Tax on profits made in the UK (though many should!) and very little NI is contributed. Since hardly any UK-based staff handle items purchased in this country, there’s almost no Income Tax or employee NI contributed into the Exchequer. Fiscally, this is a double whammy!
    So, who’s to blame? I’m afraid we all are, aren’t we? Like most people, I do my fair share of online shopping and in doing so, I’m sharpening up the coffin nails for the next High Street casualty.
    As the headlines roll in, it does make one think, especially about those employees now beginning the slow trudge to the Job Centre.

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