LONDON — Steve Smith, the former owner of Poundland, has offered to invest in the discount retailer as the company faces administration, officials and market sources said. Business Minister Kate Dearden is scheduled to meet with senior Poundland executives later this week to discuss the company's threatened insolvency.
The Walsall-based business was placed into administration by US-based Gordon Brothers, which acquired Poundland from Polish retail group Pepco for £1 last year. Gordon Brothers has stopped funding the business and rejected a takeover offer from Irish firm Martin Property Group, the company said. The retailer has given until Thursday to find a rescue deal, putting up to 12,000 staff at risk.
Smith, who left the business in 2006, said he was "really surprised" to learn about the administration appointment despite Poundland reporting sales growth of 11% compared to the previous year. Gordon Brothers is evaluating interest for the whole business and formal and indicative offers for significant viable parts of it.
The development comes as UK retail faces continued pressure, with established brands reassessing operations in a challenging economic environment. The administration process aims to protect the business while potential buyers are sought, though the Thursday deadline creates urgency for a resolution that would preserve jobs and continue operations.
