Budget retail chain Poundworld has become the latest casualty on the British high street as it called in administrators, putting 5,100 jobs at risk.
The chain of 335 stores appointed Deloitte to handle an administration on Monday after last-ditch rescue talks with R Capital broke down.
The collapse of Poundworld, which is owned by TPG Capital, follows both Toys R Us and Maplin which fell into administration earlier this year.
Deloitte will try to find a buyer for the business, and has said there are no redundancies or store closures at this time.
“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,” Clare Boardman, joint administrator at Deloitte, said.
She said the business was hit by falling footfall, alongside rising costs and weak consumer confidence.
A spokesman for TPG said putting the business into administration was a “difficult decision”.
“We invested in Poundworld because of our belief in how the company serves its customers and the strength of its employees,” he added.
“Despite investing resources to strengthen the business, the decline in UK retail and challenging behaviour affected Poundworld significantly.”
It is understood that TPG and Poundworld’s management rejected offers to buy the business out of a pre-pack administration, and were hoping to sell it as a solvent business.
Other parties named as possible buyers were turnaround specialist Alteri Investors and Poundworld’s founder Chris Edwards.
But a deal could not be struck.
Poundworld’s losses widened in 2016-17 to GBP17.1 million ($A30m) from GBP5.4 million of losses the year before.