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How Poundland grew from a market stall to a high street giant 2 hours ago Andrew Dawkins, West Midlands and Rachael Lewis, in Walsall Getty Images Poundland has been a recognisable presence on high streets for more than 35 years "When I told people what I wanted to do, open shops on the high street selling things for one pound, they said, 'how will you find products to sell for a pound, what about inflation, it will never work.'" That is how Steve Smith, the founder of Poundland, describes the genesis of the budget giant - which went on to employ thousands of people and see over a million customers a week - on his own website . That first day, with a range of 624 products, the store took more than £13,000 - "and Poundland was born," Smith said. Smith and his wife, Tracey, owned the company for 16 years.
In 2006, he decided the time had come and he sold his final shares in the business for £250m, but later said the sale felt it was "as though somebody had died". Steven Smith Steven Smith founded Poundland in 1990 with the help of his father, Kevin Smith Its owner, Polish firm Pepco, confirmed it had sold the brand for a "nominal" sum to US investment firm Gordon Brothers. At the time Poundland had more than 800 stores across the UK and Ireland and employed around 16,000 staff.
"I did pick up the phone when I heard it was for sale but I was a bit too late," Smith said after the sale. Now, the retailer's bosses have filed a notice of intention to appoint administrators, which will give the business 10 days to find a rescue deal. Sutcliffe said she was "very sad" to hear the news Questioned about how she felt, the 49-year-old replied she was "very sad", adding: "Nine years is a lot working for Poundland and they've been really good to me as a Poundland family, really supportive." Sutcliffe added that some had worked for the business for 20 years and "it's just very sad for us all".
Asked what her message was to owners Gordon Brothers, she replied: "Please just sell. "Save our jobs, we've all got families to feed and it's... near Christmas." About 25 people took part in a protest at Poundland in Walsall on Thursday Professor Sarah Montano, a retail expert from the University of Birmingham, said: "The real problem for Poundland is, when they first started it was really great because everything was £1, that was a really unique selling point for them. "[Today] there's competitors which are offering very similar prices and for quite a lot of products they're offering them cheaper." She added that some competitors had "really got their finger on the key trends".
In a statement, the board of Poundland Limited said it had been "working on a formal sale process for Poundland" and despite "enormous efforts it has not been possible to identify an acceptable offer for the business as a whole". "The process has however attracted several established retail operators who have made formal offers, collectively these cover a significant part of the business, and we believe offer the best available prospects for shareholders, creditors and to preserve jobs," they said. "We recognise any sale process creates uncertainty and particularly when set against a challenging UK economic environment." They also thanked "staff, suppliers and customers for their continued support".
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Source: BBC
