Poundland faces collapse with warnings of 30,000 job losses

Summarised from 3 outlets · Updated 1 Nov, 13:22 · Archive

Poundland faces administration with founder Steve Smith warning of up to 30,000 job losses.

Poundland is facing imminent collapse into administration after its US owner Gordon Brothers filed a notice of intention to appoint administrators. The 600-store retailer has warned of 12,000 direct job losses, though founder Steve Smith estimates the total could reach 30,000 when including suppliers and their employees.

The timing has raised questions after managing director Barry Williams told suppliers weeks before the announcement that sales were 'comfortably ahead of expectations'. In the three weeks to 18 October, sales had accelerated to 8.4% growth with takings and profits running ahead of forecast. Williams attributed the subsequent filing to the chain being starved of funding by Gordon Brothers, which bought the business for £1 just last year.

Smith, who co-founded Poundland in 1990 but no longer owns it, has accused Gordon Brothers of being greedy and warned that collapse would cost taxpayers billions in unemployment support. He claimed he attempted to buy the company back for months but the owners refused to negotiate with him. Smith also warned that many of Poundland's thousands of suppliers, some dependent solely on the retailer, would face administration if the company collapses.

How it is being reported

• Poundland founder warns high street will go bust if bargain shop collapsesMore than 12,000 staff and 600 stores are at risk (Picture: JUSTIN TALLIS / AFP via Getty Images) The founder of Poundland has warned that the discount company’s collapse could cause retailers across the high street to go bust. Steve Smith, who founded Poundland in 1990, predicted it would be a…Metro · 1 Nov, 17:00
• Poundland 'comfortably beating' market expectations before collapse fears with '30,000 job losses'EXCLUSIVE: Poundland's US owner is facing fresh questions, after a note to suppliers said the discount chain was beating sales forecasts at the start of its new financial yearThe Mirror · 1 Nov, 13:01
• Poundland collapse will trigger 30,000 job losses, founder warns - as he accuses new owners of 'greed' amid battle to rescue retailerThe future of Poundland hangs in the balance amid calls for the current owners, US investment group Gordon Brothers, to reconsider a rejected bid by a Northern Irish firm to save the company.Daily Mail · 31 Oct, 19:30

In this story: Poundland · Steve Smith · Gordon Brothers · Barry Williams · Northern Ireland

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