Administrators to collapsed discount retailer Poundworld are to close 25 stores, resulting in 242 job losses.

Poundworld went bust last month and Deloitte, which is overseeing the process, has been attempting to secure a buyer for the business ever since.

But a memo to staff penned by the professional services firm said: "As previously advised, the administrators have been preparing contingency plans in the event that we are not able to deliver a sale of the business as a whole.

"These plans have been continuing and it is with regret that the administrators have taken the decision to effect an organised wind down of 25 stores, starting today."

That last day of trading for the affected stores, including one on Ivegate in Bradford city centre, will be July 15.

Poundworld, which was formerly owned by private equity firm TPG Capital, has 335 stores and employs around 5,100 people.

The news comes as hopes for a rescue of the beleaguered retailer fade.

Deloitte last week 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.

However, on Monday the Press Association revealed that the founder of rival Poundland, Steven Smith, is in early-stage talks about a bid to salvage part of Poundworld out of administration.

Daniel Butters and Clare Boardman at Deloitte have already made 100 people redundant at Poundworld's head office in Normanton, West Yorkshire.

A memo to staff, seen by the Press Association, said that last day of trading for the impacted stores will be July 15.

"As previously advised, the administrators have been preparing contingency plans in the event that we are not able to deliver a sale of the business as a whole.

"These plans have continuing and it is with regret that the administrators have taken the decision to effect an organised wind down of 25 stores, starting today."

Full list of Poundworld store closures: Doncaster North Shields Wakefield Stretford Sutton Coalfield Ashton Blackburn Manchester Arndale Denton Derby West Field Nottingham Broadmarsh Grays Middlebrook Chester Newcastle Wallsend Bradford Ivegate Birmingham Crewe Halifax Liverpool Bell Vale Loughborough Ipswich Carmarthen Dumfries Hyde