Poundworld to close as many as 100 stores as latest retail CVA is put on the table

Poundworld has become the latest retailer to consider store closures and rent reductions.

Some 100 stores could be shuttered under new plans, according to Sky News. The retailer is set to follow the likes of New Look, Carpetright and Toys R Us with a mechanism called a company voluntary arrangement (CVA).

Hundreds of jobs are now at risk as Poundworld prepares to close sites through the process, which will be overseen by Deloitte.

It is the second time this year that a company backed by private equity firm TPG Capital has turned to a CVA, after restaurant chain Prezzo passed plans to close nearly 100 sites.

Read more: The full list of Prezzo’s 94 restaurant closures

However it is thought that TPG is still primed to inject £40m into the business in order to assist with its transformation.

Poundworld declined to comment.