Poundworld is among various retailers feeling the pinch of the current economic climate.

Negotiations between Poundworld owners and a potential buyer have broken down, calling into doubt the future of the struggling retailer.

The prospective buyer, Alteri Investors, had been involved in advanced talks with Poundworld’s owner TPG, before later pulling out.

Amid continued difficulties, about 100 of Poundworld’s 355 locations across the UK were already at risk of closure.

Currently, the company employs around 5,300 staff, of whom many may be under threat if the retailer fails to find a resolution to its mounting woes.

Poundworld is the latest in a series of UK retailers feeling the impact of an increasingly challenging trading environment.

After news of the collapse of Toys R Us and Maplins, a number of high street giants have announced a string of store closures in recent weeks.

Carpetright issued its second profit warning for the year in March, as it continues to consider ways to increase its cash flow.

On Wednesday, Carpetright announced it had secured £60 million equity raise, pending shareholder approval, relieving pressure on the retailer.

Similarly, Marks & Spencer recently revealed plans to accelerate the closure of around 100 stores, in a bid to mitigate substantial losses from its struggling home and clothing divisions.

Moreover, earlier this week department store giant House of Fraser was forced to deny speculation of an imminent collapse, after reports said that rescue talks had broken down over the course of the weekend.

The difficulties facing so many well-known retailers over the course of the year has prompted concerns of an impending death of the high street.

Conversely, WH Smith revealed a strong performance offsetting the general decline across the high street.

This was largely attributed to the dominance of its travel division, with WH Smith maintaining a strong presence in the nations airports.

Nevertheless, a general downturn in footfall figures alongside a shift in consumer spending habits has contributed to an increasingly volatile trading climate for some of the nation’s biggest retailers.