Around 1,500 Poundworld jobs could be at risk after the company’s plans to shut 100 stores across the UK emerged on Thursday.
Under a restructuring plan, known as a Company Voluntary Agreement, around a third of the discount chain’s 355 stores could close and the rents negotiated down on the remaining sites.
It puts the future of some of the brand’s 7,000 employees working across the store network in doubt.
Scroll down for video
Around a third of the discount chain’s 355 stores would close as part of a plan to restructure the group
The news comes amid growing unrest on the high street with a number of big name retailers forced to pursue CVAs this year including New Look, Byron, Prezzo and Carpetright.
The future of 300 Carpetright workers was set to be decided on Thursday night when creditors were due to meet and vote on its CVA, which was announced earlier this month.
It has earmarked a further 81 stores for closure after 11 already stopped trading earlier this month.
Carpetright’s creditors were due to meet to vote on its own CVA which would decide the fate of some 300 workers
Toys R Us has been one of the biggest retail casualties this year with its 75 UK stores now closed and 2,054 jobs lost as a result
Other brands such as Toys R Us have closed down completely as the pressures of attracting customers with less money to spend weighs mounts.
Poundworld, which can trace its roots back to a market stall in Wakefield West Yorkshire set up in 1974, is owned by private equity firm TPG Capital and is expected to announce the terms of the CVA next month.
Prezzo is yet another familiar name due to suffer closures as part of a CVA
Landlords will then vote on whether to approve the proposal.
All of the major CVAs proposed this year have been rubber-stamped by landlords.
Poundworld had made no official comment regarding the CVA, store closures or potential job losses at the time of writing.
Its owner TPG Capital also owns restaurant chain Prezzo, which recently secured the backing of creditors for a CVA.
The plan will allow the Italian-themed chain to exit unprofitable branches and secure rent reductions.
A total of 94 of Prezzo’s 300 outlets will close, with around 500 jobs understood to be in the firing line, although many staff will be redeployed at other restaurants.
The CVA proposal was backed by 88 per cent of the creditors.