Poundland's former owner, Steve Smith, has expressed his willingness to invest in the company, stating his surprise at the current owners, Gordon Brothers, filing for administration despite reported sales increases. Business Minister Kate Dearden is scheduled to meet with Poundland executives later this week to discuss the company's potential insolvency, which places up to 12,000 jobs at risk.
Gordon Brothers, an American private equity firm that acquired Poundland from Polish retail group Pepco for £1 last year, has stopped funding the business and rejected a takeover bid from the Martin Property Group (MPG). The retailer faces a Thursday deadline to secure a rescue deal. The government's involvement is primarily for fact-finding, with limited scope for direct intervention in the commercial transaction, according to government sources.
Smith, who founded Poundland in 1990, has been attempting to contact Gordon Brothers for three months without a response. He believes the company is performing well, citing an 11.2% sales increase compared to the previous year and anticipating a significant profit this year. "If there's an opportunity, I definitely want to put some money back in there," Smith stated, emphasizing that the collapse of Poundland would also impact an estimated 20,000 to 30,000 jobs across its supply chain.
Liam Byrne, chair of the Business, Innovation, Science and Trade Committee, has called for urgent government action, expressing suspicion that the current owners might be trying to "cut and run" for their own profit, jeopardizing thousands of jobs. "Our message today to government and to ministers is, do not leave this to the last minute, which is Thursday... please get on the case now to get everybody around the table to maximize every option to save as much of the business as possible," Byrne urged.
Poundland Limited's board confirmed they have been pursuing a formal sale process but have not yet found an acceptable offer for the business as a whole. Gordon Brothers acknowledged that while MPG was initially the preferred bidder, attention is now shifting to other active bids being evaluated to minimize uncertainty for employees and stakeholders. Poundland operates 600 stores across the UK and Ireland and serves millions of customers weekly.