Reported by The Guardian
Steve Smith calls on owners to accept proposed buyout as 12,000 staff face uncertain future in run-up to Christmas
The founder of Poundland has warned that staff at the retailer could be out of work for “years” if it collapses, as he called on the owners of the troubled chain to accept a proposed buyout deal.
Steve Smith, who set up the firm with a store in Burton upon Trent in 1990, said: “Once these jobs are lost, they are lost” from Britain’s struggling high streets. His warning comes as the chain’s 12,000 employees face uncertainty over their future in the run-up to Christmas.
More from the original report
Poundland’s future hangs in the balance after the retailer, which is controlled by the US restructuring specialist Gordon Brothers, filed a notice of intention to appoint administrators at the high court on Thursday, with the advisory firm AlixPartners lined up to run the process.
The legal measure protects Poundland from the demands of creditors until 12 November while a solution to its problems is sought. However, the likelihood of it avoiding mass store closures and job losses diminishes by the day as suppliers have held back on deliveries, hurting its ability to trade .
Poundland’s management is scheduled to meet Kate Dearden, the minister for the future of work, on Wednesday as political pressure mounts on Gordon Brothers to accept an offer from Northern Ireland’s Martin Property Group rather than calling in administrators to break up the retailer.
The restructuring firm is understood to believe that it can raise more from a breakup of Poundland than through the Martin offer.
Smith – who sold his final shares in Poundland for £250m in 2006 – said he was prepared to support that offer but Martin Property Group did not need his cash.
“It was my baby,” he said, adding that he had put in an offer when Poundland was first put up for sale but had not heard back and it was too late to now launch his own bid.
“If they have got offers on the table, why is Gordon Brothers not taking it and saving…