Jobs at risk at Poundworld and Bargain Buys as administrators are appointed

Hundreds of Welsh retail jobs are under threat after the collapse of high street chain Poundworld.

Talks broke down over the weekend as Poundworld tried to broker a rescue deal with private equity firm R Capital. Losses reportedly jumped to £17.1million in 2016 to 2017, from £5.4m the year before.

Many of these have been struck this year as retailers have struggled with surging costs, rising business rates, competition from online rivals and a slowdown in consumer spending.

Clare Boardman, joint administrator of Poundworld, said that the chain had been affected by the "challenging" retail environment.

"Unfortunately, this has not been possible".

Chris Edwards, who founded the business in 1974 before selling it to TPG for 150m, is thought to be one of those who have expressed an interest in buying back the business.

Several retailers have shown significant financial distress this year, with both Maplin and Toys R Us disappearing from the high street.

Restaurant businesses have also been seeking to cut their costs with store closure programmes, with Carluccio's, Byron and Prezzo all pushing through CVAs this year.

Deloitte added that they believe a buyer could still be found for the business, or at least part of it.

It also operates the Bargain Buys chain which has a store in Gravesend. "We thank all employees for their support at this hard time".

A TPG spokesperson said it was a "difficult decision for every party involved".

Some other British retailers are closing stores including Marks & Spencer, fashion retailer New Look, floor coverings group Carpetright, mother and baby goods retailer Mothercare and department store House of Fraser.

"Despite investing resources to strengthen the business, the decline in United Kingdom retail and changing consumer behaviour affected Poundworld significantly".

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