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Fears over the future of Cookstown Poundworld

Wednesday, 13 June 2018

Fears over the future of Cookstown Poundworld thumbnail

POUNDWORLD workers are facing an unclear future as the company looks to imminently appoint administrators.
The company, that has stores in Cookstown's Orritor Road Retail Park and Armagh, is considering a so-called Company Voluntary Agreement, which is an insolvency procedure which would allow it to slash its rent and close a number of stores.
The news comes as the group's private equity owner struggles to secure a rescue buyer before the company's next rent payment, with around 5,300 jobs at risk throughout the United Kingdom.
It is understood that TPG Capital, Poundworld's owner, does not intend to put more money into the group, which has 12 stores in Northern Ireland.
The move comes after Carpetright, also with a Cookstown store, announced it was also pursuing a CVA earlier this year.
No serious buyers had come forward by the deadline of Monday last week, giving the company few options but to call in the administrators.
The company's founder, Chris Edwards, is thought to be trying to find backers for a rescue bid, but is running out of time ahead of the next rent payment date, which is the 24th June.
But the cut-price chain has almost no time left as it must give creditors 14 days notice ahead of a vote, which it would need to secure before its next rental payment.
The company's difficulties come as a string of retailers and restaurants seek to exit high-street outlets in the face of rising costs and a squeeze on consumer spending.

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