DUBLIN, Ireland - The failing bargain retailer, Poundworld U.K., that collapsed into administration in June this year, and has announced a string of store closures and layoffs since then - was rescued on Friday.
The prominent Dublin retailing family, the Hendersons announced that it would acquire Poundworld U.K. and the deal is now set to salvage part of the budget retailer’s store estate.
In 2015, Poundworld U.K. was bought by private equity firm TPG Capital in a deal worth 150 million pounds.
However, the retailer went into administration in June, putting the future of about 5,000 employees at risk.
As administrators stepped in, the retailer closed over 250 stores, and 4,000 of its employee were laid off.
Meanwhile, Deloitte said that it was had been trying to find a buyer for the business as a whole.
It even reassured that despite store closures, it was still hoping to find a buyer for a slimmed-down Poundworld operation.
Later, Deloitte announced plans to close 25 stores and axe 242 jobs.
More recently, the Poundworld administrator announced plans to close another 80 stores and slash 1,024 jobs.
After the latest store closures, that are planned to go ahead this weekend, Poundworld would be left with just 230 outlets.
At this critical phase for the company, Poundworld’s deal with the prominent Irish family has been announced, even though Deloitte said that all store closures will still go ahead as planned.
Ireland’s Henderson family, who specialize in discount retail businesses, said that the administrators of Poundworld, Deloitte had agreed to its bid.
Incidentally, in 1984, the Henderson family founded Ireland's original Poundworld store (not related to the U.K. firm) and then sold it in 2007.
According to reports, the Hendersons have formed a U.K. company called RVP Holdings, which will run Poundworld.
While the family has not revealed the financial terms of the deal, it confirmed that jt said that administrators Deloitte had agreed to purchase the “best and remaining stores” owned by Poundwolrd for an undisclosed sum.
Commenting on the deal, David Henderson, whose family established the empire, said in a statement, "We are delighted to have agreed the purchase of Poundworld and we now look forward to bringing the company back to profit and provide current and new customers with an unrivalled product offering at low prices.”
Further, in an official statement, joint administrator Clare Boardman said, "Whilst we remain hopeful that a sale for part, or parts, of the business can still happen, it has not been possible to sell the business as a whole. We would like to thank all the employees for their continued support and commitment during this difficult time. We are keeping staff appraised of developments as they happen."