business
Poundland's former owner offers to invest as minister prepares to meet board
Steve Smith offers to invest in Poundland as Business Minister prepares to meet executives this week
Key points
- Poundland has been given until Thursday to find a rescue deal, putting up to 12,000 staff at risk.
- Business Minister Kate Dearden will meet senior Poundland executives later this week, a meeting described as predominantly fact finding.
- Gordon Brothers has stopped funding the business and rejected a takeover offer from Martin Property Group.
Why it matters. The outcome could affect up to 12,000 jobs and hundreds of stores, and government sources concede there is limited scope to intervene in the commercial transaction.
Steve Smith, who left the Walsall-based chain in 2006, said he wants to put money back into Poundland, which has until Thursday to find a rescue deal. Smith said he had tried to contact owner Gordon Brothers over three months without reply, and that sales were up 11.2% on last year. Gordon Brothers bought the firm from Pepco for £1 last year and rejected a takeover offer from Martin Property Group, putting up to 12,000 staff at risk.
Latest updates
Poundland's former owner offers to invest as minister prepares to meet board
Poundland has been given until Thursday to find a rescue deal after its owners, Gordon Brothers, filed for administration. Up to 12,000 staff are at risk if no deal is found. Steve Smith, who left the Walsall-based business in 2006, said he was surprised by the filing because sales were up 11% on the previous year. He said he tried to contact Gordon Brothers but received no reply. The BBC understands that a government business minister is preparing to meet the company's board.