Monday, 11 June 2018

It's going to be one heck of a closing down sale...

From the BBC:

Discount retailer Poundworld has appointed administrators, putting 5,100 jobs at risk.

The move came after talks with a potential buyer, R Capital, collapsed leaving Poundworld with no option other than administration.

Poundworld, which serves two million customers a week from 355 stores, also trades under the Bargain Buys name.



3 comments:

mombers said...

What happens to leases in administration? Repossession by the landlord I imagine. Will be interesting to see what rent they get...

Rich Tee said...

Everything for a pound?

But seriously, it's a great gimmick, but it was always going to have a short lifespan simply due to the effects of inflation over time.

Mark Wadsworth said...

M, exactly. The sensible thing to do is cut the rents NOW to a level which allows tenant to still make a profit.

RT, agreed, but see point above.