£50m Funding Boost to Wakefield Discounter
11 November 2015
Poundworld has doubled the level of funding from its bank to £50m to support its aggressive growth plans to add more than one store a week.
The value retailer was bought by TPG Capital in May for £150m and has now secured a £50m funding package with Santander. The bank had previously agreed a narrower £25m package 20 months ago. Poundworld increased its revenues by one-fifth in the year to March 2015, to £422.3m, on the back of 38 store openings. Its new owners have backed plans to open 60 stores a year from 2016.
Chris Edwards; Co-founder of Poundworld said;
"Our ambition is to continue to introduce Poundworld’s value proposition to even more cities and towns across the UK,"
"Santander’s help two years ago put the business on a firm footing and their support helped us to improve terms with our suppliers, landlords and credit insurers.
"The business was in a great position to attract the interest of TPG, resulting in its investment earlier this year and, combined with the new facilities from Santander, Poundworld is in a strong position to push forward with its next phase of growth."
Poundworld has more than 300 stores with a further 50 multi-price stores operating as Bargain Buys. The funding will support investment in an IT system and 500,000 sq ft warehouse facility in Wakefield.