The Irish family that brought Poundworld here won't be rescuing the UK chain after all
Administrators say the Henderson dynasty’s agreement to buy 50 stores ‘didn’t go through’.
THE IRISH FAMILY that put in a bid to snap up several Poundworld stores won’t be coming to the troubled UK retailer’s rescue after the deal fell through.
It was previously announced that the Henderson dynasty – who helped establish the discount chain in the Republic in the 1980s – had agreed to buy up to 50 stores from Poundworld, which fell into administration earlier this year.
However, the agreement was never finalised and now administrator Deloitte has said the deal is off.
“We had an agreement in principle, but the sale didn’t go through,” a Deloitte spokesman told Fora.
“Following the closure of all stores, the administrators are actively seeking offers for the sale of the Poundworld brand and related intellectual property.”
A spokesman for the Hendersons said “the family is currently preparing a letter of complaint to the Institute of Chartered Accountants in England and Wales into the conduct of Deloitte UK during the negotiations for the purchase of the Poundworld UK company”.
“The family is also requesting the institute to carry out an independent investigation into this issue. It is also reviewing a number of legal options that can be pursued,” the Hendersons’ spokesman said.
Frozen food firm Iceland has agreed in principle to take on several empty Poundworld shops from the administrator.
“We have agreed to take over 19 former Poundworld units in the UK, 15 of which will become Iceland fascia stores and four of which will be fitted out in our larger The Food Warehouse format. All are expected to open in 2019,” an Iceland spokesman told Fora.
Poundworld UK was bought three years ago by US-based outfit TPG Capital for £150 million. The firm went into administration in June and the private equity group failed to find a buyer for the struggling business.
Over 355 Poundworld stores have been shuttered, resulting in the loss of an estimated 5,000 jobs.
The Henderson family has four decades of experience in the low-cost retail sector. The Irish Poundworld brand was set up by Ray Henderson, who later rebranded the business as Euroworld. It went into examinership and was sold in 2007.
Henderson’s son, David, continues to work in the sector and led the collapsed negotiations to purchase the UK stores.
According to a statement from the Henderson family announcing the proposed acquisition earlier this month, Poundworld recorded sales of nearly £500 million last year in the UK.
Note: This article was updated to include comment from the Henderson family.
