Poundworld starts closing down sale amid struggle to find buyer

Administrators at Deloitte have informed staff that Hilco will "help advise and support" staff during the process.

In a note sent to staff, and seen by the Press Association, the company said: "It has been decided that stores are to commence 'closing down' sales. For clarity, this does not mean that store will definitely close.

"The administrators' strategy remains the same; to continue to trade the business in order to realise the stock whilst seeking to secure a sales of the business, either in whole or part.

"Please be assured that the Hilco team are very experienced retail consultants who, in many cases, have been through this process themselves."

Hilco is considered a retail restructuring specialist. It is also buying Homebase.

Deloitte is still considering bids for Poundworld's assets, including sections of its store estate.

The retailer went into administration last week, putting a total 5,000 jobs at risk.

The budget chain has 335 stores, which are still operational and continue to receive stock from its distribution centre.

Announcing Poundworld's administration last week, Deloitte said the firm was hit by falling footfall, rising costs and weak consumer confidence.

TPG said putting the business into administration was a "difficult decision", and that the retailer was affected by a decline in the UK retail sector.

The news came just days after House of Fraser detailed its plans to shut 31 stores, affecting around 6,000 jobs.