A union is calling for urgent talks over the future of thousands of Poundworld staff after the company went into administration.
Daniel Butters and Clare Boardman, restructuring partners at Deloitte, have been appointed as joint administrators to Poundworld Retail Limited.
The company employs about 5100 people at 335 stores nationwide. With 11 of these stores in South Yorkshire there could be dozens of jobs at risk.
Shopworkers’ trade union Usdaw said staff are 'deeply concerned' over the move and is now seeking urgent talks with the administrators.
Dave Gill - Usdaw's national officer, said: "We are seeking urgent talks with the administrators to represent the best interest of our members and urge them to find a buyer for the company.
“Regrettably Poundworld do not recognise Usdaw and they have not been keeping us informed of developments.
"We are hopeful that the administrators will engage with us to help save jobs. We welcome Deloitte’s initial approach for Poundworld to continue to trade while a buyer for all or part of the business is sought and that there are no redundancies or store closures at this time.
“Usdaw is providing the support and advice our members require at this very difficult time and we expect the administrators to ensure all staff are treated with dignity and are fully consulted.”
Poundworld will continue to trade while a buyer for all or part of the business is sought. There are no redundancies or store closures at this time.
Clare Boardman, joint administrator, said: "The retail trading environment in the UK remains extremely challenging and Poundworld has been seeking to address this through a restructure of its business.
"Unfortunately, this has not been possible. We still believe a buyer can be found for the business or at least part of it and we are keeping staff appraised of developments as they happen. We thank all employees for their support at this difficult time.”
Poundworld has been losing cash for the past two years. Losses reportedly jumped to £17.1million in 2016 to 2017, from £5.4m the year before.
There are four Poundworld stores in Sheffield, three in Doncaster, two in Rotherham and two in Barnsley.