Steve Smith, the founder of Poundland, has taken to social media to hit out at the UK government and the retailer's current owner amid the discount chain filing notice to appoint administrators, bringing it one step closer to collapse.

Earlier this year, Sky News reported that Gordon Brothers, Poundland's owner for just 14 months at that time, had appointed Alvarez & Marsal to oversee an auction of the business. The US investment firm had paid a nominal sum of €1 for Poundland in June 2025, in a deal that promised up to £80 million in new funding but cut around 200 underperforming stores.

But last week Gordon Brothers filed a notice of intention to appoint administrators to Poundland at the high court, with the advisory firm AlixPartners lined up to run the process.

Only one bidder, Martin Property Group, a Northern Irish family owned company, was interested in buying the entire chain and working with the existing management, led by Barry Williams, the Chief Executive.

Gordon Brothers reportedly believes it can raise more from a breakup of Poundland than through the Martin offer, which was worth less than the £30 million in debt that Gordon Brothers took on when it bought the chain.

Poundland can be saved, Smith said in a LinkedIn post. He commented: "We started Poundland in 1990 and everyone said it will never work, here we are 36 years on. it wasn’t just me that created Poundland it was my staff, everyone contributed to making it what it is today."

"Everything the government has ever thrown at us, VAT increases, minimum wage increases and even business rate increases It has survived. 85% of the people in the UK have either been in or purchased something from a Poundland store. It has sold billions of pounds of products and created tens of thousands of jobs."

He added: "Over the last three months I got to know that Gordon Brothers were looking at selling the company. I tried several times to speak to them but they never returned my call. Because of this I was pleased that they must have had some good offers in that was acceptable to them. We now see that Gordon Brothers are looking at putting Poundland into administration."

"The big question is why? The business is performing well, almost 7% up on like for like sales. If Gordon Brothers are being greedy then it is going to cost thousands of jobs, in the newspapers it says 12,000 jobs are at risk. My estimate is more like 30,000 jobs. It is not just the people that work for Poundland it is also their suppliers, they have thousands of suppliers, some that just serve them, therefore these suppliers will suffer or be at risk of going into administration."

Poundland brings in millions of people every week into towns or shopping centres across the UK. Without this we will see lots of other retailers close down, Smith argues. "There is no high street revival without Poundland. If it goes into administration the suppliers will get next to nothing in the money they are owed and 12,000 people will lose their jobs, the only people that will make a lot of money out of this will be the liquidators."

"The government has been asked to get involved and the Prime Minister has already made contact. They need to take action not just say words. If Poundland closes down it will cost the tax payers billions of pounds, as up to 30,000 people will be looking for support as they will have no job." 

Smith concluded: "A few years ago I tried to save Poundworld, it could have been saved but the owners found that they could make more money closing it down then saving jobs, what a disgrace. The government did nothing to help me save 7,000 jobs last time. Let’s see if the government does something this time."

"The Poundland management have put in a good offer for Poundland which will save the company. Let’s hope Gordon Brothers are not greedy and do the right thing by accepting their offer."

2026 RTIH Innovation Awards

Physical stores will be a key focus area at the 2026 RTIH Innovation Awards.

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The awards, which celebrate global retail technology innovation in a fast moving omnichannel world, have now closed for entries. Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.

The event will consist of a drinks reception, three course meal, awards ceremony presided over by award winning stand-up comedian, presenter, actor and broadcaster, Aurie Styla, and after party until 1am.

Click here to book your place at the 2026 RTIH Innovation Awards Ceremony on Wednesday, 4th November.