Poundland Founder Offers Investment as Government Minister Prepares to Meet Board
Poundland faces a Thursday deadline to secure a rescue deal, with up to 12,000 jobs at risk.
Poundland has been given a deadline of Thursday to secure a rescue deal, putting the future of up to 12,000 staff in jeopardy.
Steve Smith, who founded the Walsall‑based retailer in 1990 with his father Kevin Smith, said he had tried to contact the current owners, Gordon Brothers, after being “really surprised” to learn that the firm had filed for administration despite an 11% rise in sales compared with the previous year.
Smith added that he would be willing to invest in the company to help keep it afloat.
The Business Minister Kate Dearden is expected to meet senior Poundland executives later this week. The meeting, first reported by Sky News, is described as a “fact‑finding” session, with government sources noting limited scope for state intervention in a commercial transaction that threatens more than 10,000 jobs and hundreds of stores.
Gordon Brothers, a US‑based private‑equity firm that bought Poundland from Polish retailer Pepco last year for £1, has stopped providing funding and has turned down a takeover offer from Irish firm Martin Property Group (MPG). The firm says it is evaluating interest in the whole business and reviewing formal and indicative offers for significant viable parts of it.
There is currently no planned meeting between the government and executives from Gordon Brothers.
Concerns have been raised that Gordon Brothers may have declined an offer from another potential buyer in order to ensure repayment of a £30 million loan it inherited after purchasing the company for £1.
Should Poundland close, the loss would leave a noticeable gap in many towns across the UK.
The upcoming meeting with Minister Dearden will focus on gathering information, as the retailer races against the Thursday deadline to find a rescue solution.
