Poundland Founder Proposes Investment to Prevent Insolvency

Steve Smith, founder of the Poundland chain, has expressed interest in investing in the company to avoid bankruptcy. The retailer has until Thursday to reach a rescue deal before the administration process is finalized.

The company's current owner, the American group Gordon Brothers, has halted funding for operations. The firm acquired the business from the Pepco Group last year for the symbolic price of one British pound.

Business Minister Kate Dearden plans to meet with the chain's executives in the coming days. The goal of the meeting is to assess the company's financial situation and understand the reasons behind the rejection of previous buyout offers.

Gordon Brothers rejected a proposal from the Irish firm Martin Property Group. There are concerns that the current owner is prioritizing the repayment of a 30 million pound loan over the continuation of the chain's activities.

The founder reported difficulties in establishing contact with the current owners over the last few months. He highlighted that the company's sales rose 11% compared to the previous year, making the current crisis unexpected.