Reported by BBC Business
Staff held a protest outside Poundland's Walsall HQ last week
The former owner of Poundland has said he would invest in the firm as a government minister said she would meet the firm's board.
Steve Smith, who left the business in 2006, said he had attempted to contact owners Gordon Brothers having been "really surprised" to learn about them filing for administration when sales were up 11% on last year.
More from the original report
The BBC understands that Business Minister Kate Dearden will meet with senior Poundland executives later this week to discuss the company's threatened insolvency.
US-based Gordon Brothers said it was evaluating interest for the whole business and formal and indicative offers for significant viable parts of it.
Gordon Brothers, who bought the firm from Polish retail group Pepco last year for £1, has stopped funding the business and rejected a takeover offer from Irish firm Martin Property Group (MPG).
The retailer has given the business until Thursday to find a rescue deal, putting up to 12,000 staff at risk.
Steven Smith founded Poundland in 1990 with the help of his father, Kevin Smith
It's understood the meeting with Deardon will be predominantly a "fact finding" meeting with government sources conceding there is limited scope for the government to intervene in a commercial transaction albeit one that puts over 10,000 jobs and hundreds of stores at risk.
There is no current meeting planned between the government and executives from current owners, US private equity group Gordon Brothers.
Concerns have been raised that Gordon Brothers have declined an offer from another buyer to keep Poundland afloat in order to ensure repayment of £30 million loan it inherited after buying the company for £1.
How Poundland grew from a market stall to a high street giant
Prime Minister Andy Burnham has said the government was "ready to support" staff as he also called for answers over why an offer to buy the business had been rejected.
Smith, from Wolverhampton and who set up the firm in 1990 with a store in Burton-upon-Trent, Staffordshire, said he contacted the owners over the last three months but…