Poundworld falls into administration

A number- or all- of Poundworld's stores could be sold

A number- or all- of Poundworld's stores could be sold

However, Deloitte said that the business would continue trading, with no store closures or redundancies planned at this time.

Deloitte is expected to oversee the Poundworld's administration period.

A source told Sky News that discussions about a rescue deal between Poundworld's owner, TPG Capital, and Rcapital, had fallen apart over the weekend, days after a bid from Alteri Investors, another turnaround company, had also been terminated.

Poundworld, based near Wakefield, northern England, is the latest British retailer to be hit by rising costs, cash-strapped consumers and a shift to online shopping.

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

Deloitte said there are no redundancies or store closures now and has been working alongside the company in a bid to keep it afloat. Its possible collapse comes after both Toys R Us and Maplin fell into administration earlier this year.

'Unfortunately, this has not been possible.

Land Rover Discovery model moved to Slovakia from the UK
So the decision to move all production to thr country has come as a surprise. The renovation of production is expected to take place in 2019.

Poundworld's losses widened in 2016-17 to £17.1 million, from £5.4 million of losses the year before. "We thank all employees for their support at this hard time".

'Even if Poundworld is lucky enough to be rescued by a white knight, it's still likely that a large proportion of its store portfolio would close for good, meaning yet more empty retail space gathering dust across the High Street'.

A TPG Capital spokesman said: "This was a hard decision for every party involved".

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

The news comes after a tough week for retail which saw department store giant House of Fraser announce it was to close more than half of its store estate amid hard trading conditions.

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.

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