High street discount store Poundworld has called in administrators, placing more than 5,000 jobs at risk.
Daniel Butters and Clare Boardman, restructuring partners at Deloitte, have been appointed as joint administrators.
Poundworld offers around 8,000 product lines mostly priced at £1, including groceries, toiletries, household cleaning and confectionery items. The business operates from 335 stores and its head office and distribution centre in Normanton, near Wakefield in West Yorkshire. The business employs around 5,100 people.
Poundworld will continue to trade while a buyer for all or part of the business is sought. There are no redundancies or store closures at this time, the administrators said.
Like many high street retailers, Poundworld has suffered from high product cost inflation, decreasing footfall, weaker consumer confidence and an increasingly competitive discount retail market.
Joint administrator, Boardman, said: “The retail trading environment in the UK remains extremely challenging and Poundworld has been seeking to address this through a restructure of its business. Unfortunately, this has not been possible. We still believe a buyer can be found for the business or at least part of it and we are keeping staff appraised of developments as they happen. We thank all employees for their support at this difficult time.”