Poundworld will shut up to 100 stores out of its 355 store branches in the UK, it has been confirmed today.
The store closures could see hundreds of job losses, it has been reported by Sky News.
This follows a Company Voluntary Agreement (CVA) taken out by the discount high street chain, which is for insolvency.
The process will be overseen by audit, consulting and financial advisory company Deloitte.
High street chains New Look, Carpetright and Toys R Us have gone through the same process following difficulties.
If Poundworld goes forward with the process, it will be making the store closures across the country.
It comes after the company reported a £17.1 million pre-tax loss for this year up to March 31.
The chain was established in 1974 by father and son team Chris Edwards Sr and Chris Edward Jr.
It now competes with popular rivals such as Poundland and Poundstretcher.
The chain presently employs 5,500 members of staff across its various branches.
It is believed, should closures occur, some of these staff will be deployed to other branches.
However, a source told Sky that there would still be some hundreds of job losses as a result of the insolvency agreement.
It is expected the CVA terms will be announced next month after which point landlords will take a vote on the proposed move.
Poundworld is owned by private equity firm TPG Capital, which also owns restaurant chain Prezzo.
Express.co.uk has contacted a Poundworld representative for further comment on this story.
Last month, Prezzo announced it was closing 92 restaurants across the UK.
his is part of a restructuring backed by most creditors which could jeopardise up to 1,800 jobs.
The chain employs about 4,500 people. Prezzo is closing all of the 33 outlets of its TexMex chain Chimichanga.
Jon Hendry-Pickup, CEO of Prezzo, said: “I would like to thank our creditors and landlords for supporting our Transformation Plan.
“While we continue to be profitable, the pressures on our industry have been well documented.
“Despite this being a tough decision, the support given today by our creditors shows that they believe we have the right approach to transforming Prezzo in the eyes of teams, customers and stakeholders.
