- Published
"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.'
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it → publish → inflation
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, external.
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which → describe → website
But now the West Midlands-based retailer is teetering on the edge, after its US-based owners Gordon Brothers cut off a vital funding supply and rejected a takeover offer from Irish firm Martin Property Group.
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owners → base → Group
Having spent time on his parents stall since the age of two Wolverhampton-born businessman Smith started out in the very same place - selling items for £1 from his own stall.
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Smith → spend → stall
After a £50,000 loan from his parents he opened the first Poundland shop, in The Octagon Shopping Centre in Burton-upon-Trent, Staffordshire, on 13 December 1990.
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he → open → December
That first day, with a range of 624 products, the store took more than £13,000 - "and Poundland was born," Smith said.
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Smith → take → 13,000
Smith and his wife, Tracy, now based in Shropshire, owned the company for 16 years.
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Smith → base → 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".
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somebody → decide → m
But by 2025, the Walsall-based company was itself sold for just £1.
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company → base → 1
Its owner, Polish firm Pepco, confirmed it had sold the brand for a "nominal" sum to US investment firm Gordon Brothers.
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it → confirm → Brothers
At the time Poundland had more than 800 stores across the UK and Ireland and employed around 16,000 staff.
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Poundland → employ → 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.
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Smith → pick → 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.
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which → file → deal
A protest was held outside the Poundland HQ on Thursday, Claire Sutcliffe - who has been at the company for nearly a decade - among those demonstrating.
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who → hold → those
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."
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they → question → family
Sutcliffe added that some had worked for the business for 20 years and "it's just very sad for us all".
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it → add → us
Asked what her message was to owners Gordon Brothers, she replied: "Please just sell.
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she → ask → Brothers
"Save our jobs, we've all got families to feed and it's... near Christmas."
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it → save → Christmas
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.
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that → say → them
"[Today] there's competitors which are offering very similar prices and for quite a lot of products they're offering them cheaper."
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they → be → products
She added that some competitors had "really got their finger on the key trends".
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competitors → add → 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".
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it → say → 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.
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they → attract → jobs
"We recognise any sale process creates uncertainty and particularly when set against a challenging UK economic environment."
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process → recognise → environment
They also thanked "staff, suppliers and customers for their continued support".
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They → thank → support
The Aporia
