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201p

Poundworld out of money

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Posted (edited)

http://www.dailyecho.co.uk/news/16273349.Poundworld_in_race_to_avoid_collapse_as_it_struggles_to_secure_buyer/

POUNDWORLD is facing a race against time to avoid collapse, with administrators on standby after a buyer walked away from talks to rescue the business.

The budget retailer is so low on cash that it might have to call in administrators within days, sources told the Press Association, putting around 5,300 jobs at risk.

---

The retailer was hit with a £5.7 million charge for onerous leases, a provision retailers make when the cost of a lease is no longer covered by the income of the store.

CommercialPropertyCrash.co.uk

Someone should start a new forum.

Edited by 201p

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Posted (edited)

Nope.

Self evident.

Grew big by getting containers of knockoff crap shipped in from China.

Come pound failing and yuan rising - fucked.

Edited by spygirl

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1 minute ago, spygirl said:

Nope.

Self evident.

Grew big by getting containers of knockoff crap shipped in from China.

Come pound failing and yuan rising - fucked.

Readily resolved by becoming a £1.20 shop.

Eg,

kHmpq3MD8qs9FZc9gfEe0DcTshMETtEwy0or-5CL

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48 minutes ago, Virgil Caine said:

Company is yours for a quid.

Difference is, when you normally buy a piece of crappy plastic for £1 it doesn't come as a pack with £76 million of debt.

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The margins for businesses like this must be a fraction of a penny on the pound.

So much so that it's probably designed to crash and burn at very short notice. It's half a level up from a charity shop.

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Shame, as it was founded in YORKSHIRE.

Bought by a vulture equity group so whaddya expect?

I have always been astounded as to how they and arch rivals Poundland survive.

Don't get me wrong, they sell cheap shite, but even at a quid I sometimes think how can you make any profit?

The little toolsets are cracking value. Not for anything serious and heavy useage, but for the oooh, I have a tool for that moment.

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Posted (edited)
2 hours ago, Sucralose Ray Leonard said:

Shame, as it was founded in YORKSHIRE.

Bought by a vulture equity group so whaddya expect?

I have always been astounded as to how they and arch rivals Poundland survive.

Don't get me wrong, they sell cheap shite, but even at a quid I sometimes think how can you make any profit?

The little toolsets are cracking value. Not for anything serious and heavy useage, but for the oooh, I have a tool for that moment.

I tend to think if Poundland can sell it for £1 how came Currys etc has to charge £10/20 for the same cheap stuff - mainly electrical type items.

Edited by twocents

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7 hours ago, Turned Out Nice Again said:

The Worthing branch shut up shop last month.

I was there for the closing day sale and snagged a gross of condoms for 10p.

Decent quality (British kite mark) but designed for the Chinese market, judging by the fit.

Too big were they?

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14 hours ago, Happy Renting said:

I'm not worried, I shop in SovereignWorld, for up-market tat.

Everything only £1.05!

I think you mean Guineaworld. 

A sovereign is worth £1 sterling or whatever the current value is in Pounds Troy. 

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2 minutes ago, Austin Allegro said:

I think you mean Guineaworld. 

A sovereign is worth £1 sterling or whatever the current value is in Pounds Troy. 

At Soverignworld you go to buy a nice thing that's listed at £1, but when you get to the checkout they actually ask for £250.

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2 hours ago, Austin Allegro said:

I think you mean Guineaworld. 

A sovereign is worth £1 sterling or whatever the current value is in Pounds Troy. 

Yeah, I keep mixing them up when I put them in the meter.

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19 hours ago, 201p said:

 

The retailer was hit with a £5.7 million charge for onerous leases, a provision retailers make when the cost of a lease is no longer covered by the income of the store.

"Hit with"? This is a book entry because they have some loss making stores; it doesn't plummet them into administration and I would guess that it comes under "exceptional" so wouldn't touch their covenants.

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Posted (edited)

Poundland just a couple of years ago I thought was seen as going from strength to strength.  When it listed initially it went to close to a billion, then bought by that south African group a bit later for half that I think.  What difference a few years makes. 

Have to say though I'm sure a lot of their margins aren't terrible on individual items I.e. weird small sized foods like marmite and peanut butter like something out of a toned down Gulliver's travels.  Guess even those margins are being squeezed now.

Edited by Dogtania

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