POUNDWORLD shops in Darlington and Middlesbrough are among North-East branches that will be closed later this month, it has been confirmed.

Earlier this month, the closing of 25 stores was announced, while a further 80 branches have now been earmarked for closure.

Administrators Deloitte have confirmed that stores in Darlington, Middlesbrough, Gateshead, South Shields and Sunderland will close over the weekend of July 20-22.

In total, the closures announced so far will result in the loss of 1,266 jobs across the country.

Privately owned by equity firm TPG Capital, Poundworld had 335 stores and around 5,100 staff prior to going into administration.

From the end of July, the collapsed firm will operate just 230 open branches.

However, Deloitte said that the latest raft of closures will not affect a potential deal for the remaining business.

The administrator said discussions with interested parties were on-going and would “continue to progress”.

Joint administrator Clare Boardman said: "Whilst we remain hopeful that a sale for part, or parts, of the business can still happen, it has not been possible to sell the business as a whole.

"We would like to thank all the employees for their continued support and commitment during this difficult time.

"We are keeping staff appraised of developments as they happen."

Shopworkers’ trade union Usdaw is providing support and advice to affected members.

National officer Dave Gill said: “We welcomed Deloitte’s initial approach for Poundworld to continue to trade while a buyer for all or part of the business is sought.

“However, now the second wave of store closures have been announced, it is clear the future of the business looks very bleak.

“We are helping our members find alternative employment with other retailers that recognise Usdaw and we were pleased to secure a promise from Poundland to offer any former Poundworld workers an interview.

“They are experienced shopworkers who find themselves unemployed through no fault of their own, we urge retailers with vacancies to look at employing ex Poundworld staff.”

Deloitte's discussions with interested parties have also involved the future of Poundworld's distribution centre and head office in Normanton, West Yorkshire, where 100 people have already been made redundant.

Deloitte has turned down a bid for Poundworld from its founder, Chris Edwards, who was looking to save a raft of stores and safeguard around 3,000 jobs.

It is understood that the founder of rival chain Poundland, Steven Smith, is in early stage talks about a bid to salvage part of Poundworld from administration.