British discount retailer Poundworld nears rescue

British discount retailer Poundworld is close to a rescue deal with former Austin Reed owner Alteri Investors, Sky News reported on Saturday, with the deal likely to be announced next week.

Private equity group TPG put Poundworld up for sale after receiving expressions of interest, prompting it to put a planned restructuring of the group on hold, a person familiar with the matter said last month.

Sky said the new owners would restructure Poundworld after the deal, which would lead to the closure of more than 100 Poundworld shops and the loss of about 1,500 jobs.

Poundworld says it serves over 2 million customers a week through its more than 350 stores around the country. TPG bought a majority stake in 2015 in Poundworld, which competes with rival group Poundland and other discount groups.

The report said the deal could be completed for a nominal sum, according to unspecified sources.

TPG declined to comment on the report. Alteri Investors were not immediately available for comment.

Poundworld is not the only retailer to be struggling in Britain where consumers are strapped for cash and increasingly shopping online.

Toys R Us UK, electricals group Maplin and drinks wholesaler Conviviality have collapsed this year, while fashion retailer New Look and mother and baby products chain Mothercare are both closing stores.