Iceland to take over a handful of former Poundworld stores while rescue deal falls through

Alys Key
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Retailer Poundworld Under Pressure To Close Up To 100 Branches
Poundworld went into administration in June (Source: Getty)

Iceland is to take over a handful of former Poundworld stores, but a deal to save another chunk of the chain's estate has now fallen through.

The retailer closed the last of its 335 stores earlier this month, after crashing into administration in June.

The Henderson family announced two weeks ago that they would take up as many as 50 units and the brand name, but the deal was not closed. The leases on many of the stores have now been returned to the landlords.

The Irish family, who founded an unrelated chain also called Poundworld in the 1980s, announced the agreement on 9 August, saying they planned to bring the company back to profit.

Read more: Administration filings tumble despite major retail insolvencies

A spokesperson for Deloitte said: We had an agreement in principle, but the sale didn’t go through. Following the closure of all stores, the administrators are actively seeking offers for the sale of the Poundworld brand and related intellectual property.”

Meanwhile frozen food retailer Iceland has agreed in principle to take on 19 of the empty Poundworld stores. Four have been earmarked to become larger format stores called The Food Warehouse, while 15 will be regular Iceland stores.

Although the new Iceland stores are expected to open next year, the deal has not yet been completed.

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