POUNDWORLD

Background

Originating as a market stall in Wakefield in 1974, Poundworld was a discount retailer, primarily selling household goods, toiletries and food products. By the time of its administration in 2018, the business operated from 335 stores across the UK, trading as Poundworld and Bargain Buys. Following a number of loss-making years and the breakdown of talks to sell the business to new investors, Poundworld entered administration in June 2018.

Hilco Capital was appointed by the Administrators to operate a store closure programme and run the stock liquidation process, maximising recoveries to the administration while buyers were sought.

Hilco Capital’s role

• Appointed by the Administrators of Poundworld to operate a store closure programme and run the stock liquidation process across the estate
• Managed supplier liaison, negotiating settlements and ensuring continuity of supply during the closure process
• Sourced and funded an additional £8m of augment stock at no financial risk to the administration estate
• Deployed 50 retail consultants at store level to manage the closure process and handover of stores
• Designed, managed and executed in-store discounting strategies to maximise stock recoveries
• Provided head office, systems, space planning and marketing support

Results

• Supply of augment stock at speed resulted in an improved store offering and significantly improved recoveries for the administration estate
• Provision of augment stock also extended the trading period while the Administrators sought buyers for all or parts of the business
• 335 stores operated over an 8 week period and handed back to landlords on schedule
• Recoveries exceeded the initial budget agreed with the company’s Administrators