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Fears for future of popular Burnley town centre store

Poundworld has announced it has gone into administration today
Poundworld has announced it has gone into administration today
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A popular Burnley store is under threat after it was announced this morning that administrators have been called in.

Discount retailer Poundworld is expected to appoint administrators, putting 5,100 jobs at risk.

Talks with a potential buyer, R Capital, are reported to have collapsed meaning that the chain felt it had no other option but to put the company into administration.

Poundworld, which has 355 stores, and serves two million customers a week, also trades under the Bargain Buys brand name.

The Burnley Poundworld store, which is situated in a prime position in Charter Walk, featured in the BBC's documentary Pound Shop Wars which made a star of manager Ian Gilbert who captured viewers' imaginations with his rapping and quick fire jokes which earned him the title of "the grafter with the laughter."

Deloitte is expected to be appointed to oversee the administration.

It will be hoping to sell the business as a going concern.

Two months ago it was announced that the company was looking to close up to 100 stores in the UK in a bid to claw back losses.

Poundworld has been losing money for the past two years. Losses for the financial year 2016-17 were £17.1m, up from £5.4m the year before.

The company was due to make an official statement this morning.

The news comes just three months after fashion giant New Look announced it was also looking to close 60 of its 593 stores. And although the Burnley branch was not on the list of those facing the axe, the company said no final decisions had yet been made on which stores would be affected.

News of the Poundworld collapse comes less than a month after the opening of a new Primark store which has given the town centre a new lease of life attracting hundreds more shoppers to Burnley.