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Bristol shopping areas are facing more woe as it emerges two major chains are considering closing stores as part of restructuring measures.

Dismal sales figures have left budget retailer Poundworld considering its “options” – it is just the latest high street brand to come under threat.

And fashion chain New Look is understood to be considering store closures as well, reports the Plymouth Herald.

Both retailers are believed to be considering a company voluntary arrange arrangement (CVA), which would allow them to cut rent bills and restructure.

But firms entering CVAs often have to shut outlets, which is exactly what happened to Toys R Us and Byron Burger already in 2018.

Private equity-owned Poundworld, which has several outlets in Bristol, said it is considering its future as speculation mounts that it will opt to restructure the business.

The firm is believed to be lining up restructuring advisers as it struggles amid “brutal” trading conditions.

Poundworld, which has more than 350 stores, is owned by American buyout giant TPG Capital, but competes fiercely with the likes of Poundland and Poundstretcher, both of which have Bristol outlets.

Poundworld is now understood to have invited troubleshooters from firms including Deloitte and Alvarez & Marsal to meet bosses.

The discount retailer, founded in 1974 as a market stall, revealed losses of £17.1million in the year to the end of March 2017.

The numbers were inflated by almost £6million of provisions for leases on loss-making stores.

It is believed the chain is under pressure to cut costs and could use a CVA to slash its rent bill and reduce its number of outlets.

A Poundworld statement, however, denied it was preparing for a CVA or had hired restructuring advisors.

But it did say: “We are assessing a wide range of options.”

Meanwhile, New Look, which also has shops scattered throughout Bristol, is understood to have written to landlords to say its finance director Richard Collyer wants to meet them.

The chain has been considering a CVA since announcing dismal losses in January 2018.

The retailer, owned by South African investment group Brait, posted a pre-tax loss of £123.5million in the three quarters to December 2017, while sales slumped 6.3 per cent to £1billion.

New Look saw like-for-like sales in the UK slide 10.7 per cent, while online sales through New Look’s website fell 15 per cent.

It is understood the company is considering further store closures.

New Look has 594 outlets in the UK, and it is believed about 60 stores, or 10 per cent of the estate, are at risk of closure.

The two chains are not alone in facing a perfect storm of rising costs and taxes, and declining customer confidence, amid the ongoing onslaught from online and out-of-town shopping.

Electrical goods retailer Maplin, one of Britain's biggest electronics brands and with stores in Bristol, is in critical talks with potential buyers after like-for-like sales fell seven per cent during Christmas trading.

And womenswear and home furnishings retailer Laura Ashley posted its third profit warning in just a year.

(Image: David Betts)

Already in 2018, House of Fraser, Debenhams, New Look, Mothercare, Toys R Us and Marks and Spencer, all represented in Plymouth, have reported trading woes.#

Fashion giant H&M has also said it is braced for further sales falls across its stores in 2018.

But while some stores have struggled, others ARE trading well.