Poundworld is expected to fall into administration today, risking over 5,000 jobs.
According to Sky News, the discount retailer will follow the same fate as Maplin and Toys R US and fall into insolvency.
The group has posted poor results over the past two years. The bargain retailer had £17.1 million worth of losses for the financial year 2016-17.
Deloitte is expected to handle the process.
There is hope that a proportion of the 5,300 Poundworld employees may keep their jobs if buyers can be found for parts of the business during the administration process.
UK high street stores are running into a string of trouble. Just last week, House of Fraser announced plans to close 31 of its 59 shops due to the “unsustainable” cost of running its store network. The store closures will risk 6,000 jobs.
Possible buyers are turnaround specialist Alteri Investors and Poundworld’s founder Chris Edwards, however, no deal has been made.
Mothercare and Carpetright (LON: CPR) have both announced store closures.
“We are very grateful for the support of our many stakeholders across our creditor base in supporting today’s CVA proposals,” said Clive Whiley, Mothercare’s interim executive chairman.
“Their forbearance and support today is a crucial step forward to achieve the renewed and stable financial structure for the business that will drive an acceleration of Mothercare’s transformation.
“These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the UK and internationally.”
Restaurant chains are also facing a turbulent time. Carluccio’s, Prezzo and Byron have all had to close stores.