Troubled retailer Poundworld has appointed administrators after rescue talks failed to progress.

the discount shop was forced into administration this week after talks with potential buyer, R Capital, collapsed.

The unravelling of the chain, which operates some 355 stores across the country, means over 5,000 jobs are at risk.

Deloitte, the administrators, have insisted that Poundworld will continue to operate as usual with no redundancies as of yet.

It said in a statement: “Like many high street retailers, Poundworld has suffered from high product cost inflation, decreasing footfall, weaker consumer confidence and an increasingly competitive discount retail market.”

A spokesperson from TPG, the owner behind the group, said: “This was a difficult decision for every party involved. We invested in Poundworld because of our belief in how the company serves its customers and the strength of its employees.

“Despite investing resources to strengthen the business, the decline in UK retail and changing consumer behaviour affected Poundworld significantly.”

News of Poundworld’s impending collapse first began circulating last week when another potential buyer, Alteri Investors, pulled out from negotiations.

The discount retailer is the latest in a series of UK retailers grappling with an increasingly challenging trading environment.

New Look, Marks & Spencer’s, Carpetright and House of Fraser have all announced store closures in recent weeks, prompting concerns about the death of the UK high street as we know it.