Pinched-for-cash Poundworld in talks with TPG for more money after poor festive trading
Discount retailer Poundworld is in talks with its majority owner, US private equity giant TPG Capital, for a new cash injection after a troubling festive period.
Poundworld is asking for another £30m to £40m of investment, according to Sky News, after disappointing sales and one-off costs saw its debt pile up last year.
Sources close to TPG, which took control of Poundworld in 2013 for £150m, painted the further investment as necessary to transform what was a family-run business into a nationwideretailer, Sky News reported.
Chris Edwards, who founded Poundworld and left the company last year, now runs rival Poundstretcher. Another peer, Poundland, has also experienced difficulties recently after its owner Steinhoff was revealed to be at the centre of an accounting scandal.
Poundworld's most recent accounts, for the year up to March 2017, saw the company lose £0.6m in restructuring costs, £0.6m to fines, £3.9m as assets decreased in value and £5.7m to cover onerous leases.
It also paid £0.9m to TPG in management and consulting fees.