History
The chain originated in 1974, when Christopher Edwards Sr. set up a market stall in his home town of Wakefield.[6] He initially set up a multi-price store called "Bargain Centre", before switching to a single-price format in 1997, trading as "Everything £1" at 58, Westgate, Bradford.[7] Edwards renamed the chain "Poundworld" in 2003.[6]
From the onset of the recession that started in 2007, Poundworld expanded rapidly.[8] Its sales grew by 42% between 2010 and 2011,[9] and increased by 55%, with revenues of £200m, in 2012.[8] Its expansion meant that the company required larger premises, and it relocated its head offices to the largest unit in Yorkshire's main warehousing and distribution base.[10] It also opened an overseas office in Shanghai during this period.[11]
In October 2013, Poundworld partnered with the Marie Curie Cancer Care charity, which it had already supported during 2013's Great Daffodil Appeal. To date, the company has raised in excess of £900,000 to help care for those (and their families) living with a terminal illness.[12]
In November 2013, Poundworld opened its first multi-price retail store, in Walsall, under the name Bargain Buys.[13] Bargain Buys was originally named (and briefly traded as) Discount UK, with the name change allowing the chain to compete more closely with its rivals in the market.[13] The company planned to open a further 100 stores in the next three years.[14]
In July 2014, the store secured a £26m loan from Santander to finance its stated aim of increasing its approximately 240 stores by 40 or 50 a year for the next three years, and to strengthen its overseas supply chain from where about 30% of its supplies are sourced.[15]
The Edwards (father and son) were placed at Number 12 in Management Today's annual list of Britain's Top 100 Entrepreneurs in October 2014.[16] In the same month, Poundworld Retail was named one of the United Kingdom's fastest-growing retailers in the Sunday Times Grant Thornton Top Track 250.[17]
On 15 May 2015, the company announced that it had sold a majority stake in the business to private equity firm TPG Capital for £150 million,[18] with Christopher Edwards, his son, and other senior executives retaining a substantial minority holding, allowing the family to retain the day-to-day running of the business.[19] Poundworld announced that the investment from TPG would allow the business to grow, with further plans for store expansion.[20] Shortly after the deal, the company announced that it had begun construction of a new distribution centre in Normanton as part of a plan to create 4,000 jobs, and hoped to open a further 200 new stores in the next three years.[21][22]
In early 2018, TPG proposed to put the company through a Company Voluntary Arrangement (CVA) to restructure the business by closing around 100 of its existing 355 stores. However, during the process, TPG was approached by third parties interested in buying the company; it agreed, in May 2018, to put the CVA process on hold, and to look at a sale.[23] In June 2018, Alteri Investors pulled out of talks to buy Poundworld.[24]
Administration
After rescue talks with potential buyer R Capital failed, the company entered administration on 11 June 2018, the same day that electrical retailer Maplin became defunct. The administrators, Deloitte, continued to run the business as normal.[25]
On 19 June 2018, one hundred staff from the company's head office were made redundant.[26] A day later, the company began closing down sales at all of its over 300 stores, although they stated that no stores were "definitely" closing.[27] A further 20 head office staff were made redundant on 29 June 2018.[28]
After much speculation in the media, it emerged that the founder, Chris Edwards, was in talks to rescue the struggling business, but that there were bitter divisions between Edwards and the administrators, Deloitte.[29]
