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Footage of the incident, captured on a mobile phone, has gone viral after being shared online.

It was recorded at Poundland in Castle Square at around 2pm on Tuesday and showed a suspected shoplifter being ejected from the store.

The footage shows a man being placed in a headlock and floored by a shop worker after being accused of shoplifting.

Another Poundland employee then intervenes and drags him into the street outside.

During the incident, the man ejected from the store loses a shoe and his trousers and underwear fall down.

As the ejected man gets to his feet he confronts the shop worker who dragged him out and makes a motion suggesting he is going to strike out.

He does not, but the shop worker, performs a karate kick and knocks him to the ground.

South Yorkshire Police said: “We are aware of a video filmed in Sheffield city centre that is circulating on social media.

“Police were called to Poundland on Castle Square at around 2pm on Tuesday with reports of theft, disorder and threats being made towards staff.

“A 35-year-old man was arrested on suspicion of theft and assault and has since been released under investigation.

“Enquiries are ongoing.”

A Poundland spokesperson said: “We know our colleagues face difficulties every day dealing with shoplifters.

“We're pleased that this specific incident is now in the hands of the police.

“We’re sure they’re the right people to deal with this based on all the circumstances.”

Man arrested over Poundland incident in which security guard karate kicks suspected shoplifter in Sheffield