'Let’s save Poundland and 30,000 jobs' says company’s founder Steve Smith as administration looms

“Let’s save Poundland and 30,000 jobs,” Black Country businessman Steve Smith has urged as administration looms for the beloved high street discount chain that he founded.

Mr Smith, who established Poundland in the 1990s with his late dad Keith, has warned “there is no high street revival without Poundland” as he urged the community, business leaders and government to heap pressure on current owners Gordon Brothers to accept a solvent offer for the business.

Irish real estate firm Martin Property Group had submitted a bid to buy the Black Country-based chain but it was rejected by American investment firm Gordon Brothers, prompting Poundland’s bosses to file a notice of intent to appoint administrators.

This has given the business a window of 10 working days’ breathing space from creditors to secure a potential rescue deal.

The clock is ticking, however, and the discount chain’s founder Mr Smith told the Express & Star: “If Poundland closes down there’ll be other retailers who will close down.”

“There is no high street revival without Poundland,” he explained in a social media post, adding: “If Poundland goes into administration the suppliers will get next to nothing in the pound they are owed and 12,000 people will lose their jobs, the only people that will make a lot of money out of this will be the liquidators.

He also warned the ripple effect could hit as many as 20,000 to 30,000 jobs.

On LinkedIn, he said: “It is not just the people that work for Poundland - they have thousands of suppliers, some that just serve them, therefore these suppliers will suffer or be at risk of going into administration.

“Poundland brings in millions of people every week into the towns or shopping centres.”

Mr Smith, who lives in Wolverhampton, has kept a close eye on the goings on at the former company he founded with his late dad Keith who had a home in Claverley, Shropshire.

The first Poundland store was opened in Burton-on-Trent on December 13, 1990, and hundreds of others followed with the brand becoming a staple on the high street until it was hit by a rise in online shopping and competition from the likes of B&M and Home Bargains.

Amid the downturn last summer, its then owners Pepco Group sold the brand to American investment firm Gordon Brothers, with a recovery programme put in place.

Mr Smith said he’d wanted to buy the company back but to no avail and now, as the beloved discount chain hurtles towards administration, the veteran businessman has issued a damning verdict on the knock-on effect the demise of Poundland would have on the UK’s high streets and taxpayers.

“If Poundland closes down it will cost the taxpayers billions of pounds, as up to 30,000 people will be looking for support as they will have no job,” he said.

He called on the Government to “take action, not just say words” to help save Poundland after reports Prime Minister Andy Burnham has urged Gordon Brothers to sell the brand and protect jobs.

He said: “A few years ago I tried to save Poundworld, it could have been saved but the owners found they could make more money closing it down than saving the company.

“The Government did nothing to help me save 7,000 jobs last time. Let's see if the Government does something this time.”

Business Secretary Jonathan Reynolds said of the situation: “I’m deeply concerned to see the reports swirling around Poundland’s uncertain future, and the impact that could have on the 12,000 staff and their families, who are at the forefront of my mind.

“If it is true that there was a bid on the table that would have avoided the risk of administration, then the ownership has serious questions to answer and I want to know urgently why that bid wasn’t accepted.

“The Prime Minister and I stand ready to take action to help workers and reassure families however we can.”

Mr Smith has called on Gordon Brothers to accept the offer submitted by Martin Property Group - the preferred option that had been backed by Poundland’s management team - adding: “Let's hope Gordon Brothers are not greedy and do the right thing.”

He urged everyone to keep the plight of Poundland in the public eye - adding: “We only have around a week to save Poundland and many jobs.”

He continued: “If we all get together and we all push Gordon Brothers to take the offers on the table it could save all these jobs. The Government hopefully will put pressure on them to take the offers on the table.

“We’ve got the next seven days to push them to do it or if not it’ll be too late. There’s a lot of shops in the West Midlands.

“Let’s save Poundland and 20,000 to 30,000 jobs.”

Meanwhile, a petition launched to urge the Government to take action to save Poundland has gathered more than 23,000 signatures.

Petition creator Lisa Maynard said: “Poundland is more than just a retail store; it's a cornerstone of our communities and high streets. It provides affordable products that millions of UK residents rely on daily, playing a crucial role in supporting those on tight budgets.

“The loss of Poundland would be felt deeply across the country, affecting consumers and communities who have long depended on its presence.

“The Government's intervention can make a difference. We urge policymakers to explore all avenues to preserve the business and secure these jobs. This could include offering financial assistance, tax reliefs, or facilitating a restructuring process that could save this cherished institution.

“Let's not allow another beloved high street retailer to disappear, leaving countless families in distress and communities stripped of their essential infrastructure. Time is of the essence, and we need swift, concrete actions to avert this crisis.”

The petition was launched after staff at Poundland staged a protest, waving placards and chanting “save our jobs”, outside the company’s Walsall head office on Thursday (October 29) as news broke that a notice of intention to appoint administrators was filed.

Poundland has around 600 stores across the UK.

Wilko and The Range owner CDS Superstores, Poundstretcher owner Fortress and TG Jones owner Modella are all understood to have expressed interest in buying parts of the business.

Other retailers including B&M, Lidl and Aldi have also reportedly showed interested in buying stores but any deals are thought unlikely to include all Poundland stores.