'I wanted to buy Poundland back' - founder Steve Smith reacts to the sale of the discount store he set up in the Black Country

Entrepreneur Steve Smith, originally from Willenhall, who came up with the Poundland concept with his dad Keith when they were market traders, said he's glad the business has been saved but baffled as to why advisors working on the sale wouldn't talk to him.

The bargain retailer, known for its £1 products, was put on the market earlier this year after a sharp downturn in trading and on Thursday (June 12) it was confirmed Poundland's owners Pepco Group has sold the company to American investment firm Gordon Brothers.

Steve, who pocketed a £50 million fortune in 2002 when he sold the business that he'd built up, said of the developments: "I am really pleased that Poundland has been saved along with many jobs.

"I was interested in buying back Poundland as I still believe in the concept and more important the people that work there.

"I do not know why Poundland advisors did not want to speak to me, give me the time and look at the proof of funds from the wealthy entrepreneurs that wanted to back me.

"All I got back from the appointed advisors was 'it is not for you Steve'. 

"I wish Gordon brothers and the Poundland management team all the best for the future." 

Steve and his dad Keith, who started out as market stallholders, created the Poundland business with fellow former market trader Dave Dodd.

They sold items for 10p in a box on Bilston Market and the concept proved successful so they set up an office above Sedgley's Concord Market and opened their first store in Burton-on-Trent on December 13 1990, after Keith backed Steve to the tune of £50,000. 

Poundland went on to open hundreds of stores across the UK, becoming one of the most popular names on the high street. But like many big name retailers it has had to battle against the rise in online shopping and competition from the likes of B&M, Home Bargains, and The Range as well as budget supermarkets.

Steve, who still lives close to Wolverhampton, said he'd had a lot of people phoning him saying "why don't you buy it back?" but it wasn't to be.

He said: "I thought they would have listened to me. They just said they've got people - there's nothing I can do. I'm sure they have their reasons.

"At the end of the day the most important thing is it's been saved. They've saved jobs and hopefully they'll find a way forward. There's really good people there."

Poundland has 825 UK stores and around 16,000 staff and was struggling to compete with other discount stores, with sales down this January and February. 

Following the sale a proposed restructure will be put to the High Court in England, Pepco said. 

It comes after Pepco warned that increased employer National Insurance contributions which kicked in in April would put added pressure on the chain. 

Pepco Group has owned Poundland since 2016. Gordon Brothers is a global investment firm which formerly owned fashion label Laura Ashley.