Poundland founder tried to buy the business back

The founder of Poundland has said he tried to buy the struggling discount chain back when it was put up for sale.

Steve Smith, who opened the first Poundland store in Burton-upon-Trent in 1990, sold his shares in the retailer for £250m in 2006.

“I would’ve liked to have bought it back because I’m still passionate about the people and the concept. I did pick up the phone when I heard it was for sale but I was a bit too late,” Smith told BBC News.

Poundland owner Pepco Group sold the chain to US investor Gordon Brothers last week, which is set to inject £80m into the retailer’s turnaround plan following its struggles with softer sales and profits.

The retailer is currently seeking approval for its plans to close 68 stores and impose steep rent reductions from landlords on over hundred additional sites.

Poundland has also committed to “restoring its dna” by improving its value offer and range of £1 products. The retailer had moved beyond its simple price point in recent years as it looked to expand its ranges and grow sales.

Smith told the outlet that while he understood the need for price increases, more would have been needed to prop up the company.

“It’s still a one prince concept, that’s what customers loved and what made Poundland different but I would’ve changed the price point and I think it does need new systems [and] it’s important the business get support from their suppliers.”

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