TRS and Poundworld Collapse

As Onestar rightly pointed out, Poundworld's collapse in the UK is likely adding downward pressure to the TRS shareprice (particularly given it was owned by PE player TPG). That said, it is critical to understand Poundworld and its position in the UK market. As the chart below shows, Poundworld was a smaller player in the UK discount department store market (about one third the size of Poundland - Poundland is continuing to grow and perform well), and has been plagued by a combination of high debt (about GBP200m against operating losses) and strong competition. It needed to go into administration to write-off at least some of its debt load but may reemerge or be acquired by one of the other players like Poundland. Overall, if this is why TRS shareprice is down heavily, all the more reason to maintain the buy.