I know biggest mistake ailing Poundland made, says firm's ex-boss Steve Smith as he reveals he offered to rescue chain
FORMER Poundland boss Steve Smith has revealed he offered to rescue the struggling high street chain four weeks ago.
But the multi-millionaire, who launched the bargain-hunter's paradise in 1990, was too late to save 68 shops which will now close following a major restructuring deal.
2
In an exclusive interview, Steve told The Sun on Sunday: 'I felt really sad when I heard the news. Poundland was my baby, really, so it's emotional for me.'
Steve came up with a rescue plan, but last week, Polish owner Pepco Group sold Poundland to US investment firm Gordon Brothers for £1 after a slump in trading.
'I wanted to help'
And he believes the downturn was a result of no longer having every item priced at a pound.
Over recent years, stores have introduced more expensive items such as cleaning products, frozen foods and multibuy deals.
The Government has pushed up National Insurance payments, which cost businesses millions every year
Steve Smith
He said: 'As I see it, there were a number of problems — crucially the decision to move away from the £1 an item formula.
'Another big issue is the state of the British high street.
'The Government has pushed up National Insurance payments, which cost businesses millions every year.
'Rates are going up, too, but the local councils don't even take away retailers' rubbish any more. Theft is another massive problem. In some places it has doubled in the last 18 months because we don't have enough police. As well as that, retailers have to deal with inadequate parking for customers.
'I would have introduced a loyalty points scheme for customers that offers them incentives like free parking.
'It feels to me like councils want to shut down the British high street.'
Walkthrough Poundland's first £1million store
When former market trader Steve, 63, turned 18 and wanted to launch a business of his own, his father Keith gave him the idea of starting up a shop where every item cost £1.
Together, the pair co- founded Poundland, opening their first shop in Burton upon Trent, Staffordshire, in December 1990.
It made an astonishing £13,000 on day one.
Steve went on to build an empire of hundreds of stores around the country and employed more than 8,000 people.
But the pressure of running a multi-million pound business took its toll.
In 2006, he took the tough decision to sell his final shares in the business for £250million.
He said: 'I used to get up in the morning, my daughter was asleep, I used to get back home and she was asleep. Before I knew it, she was 16.'
But he admitted: 'It was as though somebody had died when we sold. I felt I had taken it as far as I could without further major investment, but when I heard the business was in trouble, of course I wanted to help.
'I offered to buy back the company from the Pepco Group to turn it round, but they turned me down.
'I was too late. I had the backing of some very wealthy entrepreneurs who wanted to invest — like me, they still believe in the concept and more importantly the people that work there.
'Now, the business I built into a multi-million pound company has been sold for £1, and it breaks my heart.
'So proud'
'I could see where it was going wrong and my parents would be spinning in their graves to see what has happened to our beloved business.
'They died within months of each other in 2022 and were so proud of the company, they even had a Poundland museum in their home.'
While around 650 stores will be saved by the new deal for now, a further 82 loss-making shops could be set to close their doors soon.
Poundland also plans to scale back its chilled range and close its frozen and digital distribution site at Darton, South Yorkshire, this year.
Another warehouse in Bilston, West Midlands, is to close in early 2026.
Around 1,000 shop staff and 350 warehouse workers in the UK will be affected by the Poundland restructure, but none in Ireland.
2
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
12 minutes ago
- Daily Mail
People left surprised after cruise ship worker shares payslip
A Royal Caribbean cruise ship worker has revealed how much he takes home as a casino host on board the brand's liners. Brit Chris Wong has worked at sea for the company since 2013, regularly posting content online about his life on the ocean waves. This week he announced his current contract will be his last, as he sails into new waters in 'the next phase of my life'. However, A recent YouTube post saw the entertainment employee sharing the sums of his most recent pay slip. With 114,000 followers on YouTube, he describes himself as probably the most followed casino host on land or sea - and explained that previous insights into his salary had been amongst his most popular content ever. Around 2 minutes 40 seconds into the 17-minute-long clip, Wong bravely goes where many employees might not - he shares his payslip on screen for all to see. The white and blue financial document clearly carries Royal Caribbean's branding, although Wong has covered up confidential details such as his employee number and address. The one piece of information most people want to see though hasn't been scratched out; how much he brings home for a month's work. Receiving two pay slips, one for salaried pay, the other for additions such as tips, Wong revealed he earned $4,340.30 (£3,222.93) in a month this year Wong explains in the clip, entitled 'How Much Money I Currently Earn Working On A Cruise Ship in 2025': 'The only thing I haven't scribbled out is the bottom, which is my net pay and this is exactly how much money I was paid for that two week period.' Showing two two-week pay slips, the first sum is $2,890.21 (£2,145.52), while the second, based solely on additional earnings such as tips and commission, is $1,450.09 (£1076.50). The grand total for his work in January this year comes to $4,340.30 (£3,222.93). He explains that he's on 'fantastic money', saying: 'For me to earn something like that in the UK, it's actually quite difficult at this point in time, with the way inflation is and everything'. He adds that earning that sum without having to pay for rent, with only minimal bills for his phone and internet use, and no large outgoings such as a house or a car, means he's very happy with his salary. Those tuning into the video admitted they were impressed by Wong's earnings and his job, saying: 'Congrats! So happy to see you doing well!!!! Don't listen to the naysayers, make as much $ as you can and save, save, save!' Another added: 'As long as you like/love what you do and feel your compensation is fair, stick with it as long as that remains true.' This week, Chris revealed that he was handing over the casino host baton to a colleague after deciding to leave Royal Caribbean. 'On a Royal Caribbean Blog discussion forum, he posted: 'I have officially announced and decided that this will be my last ever contract as a crew member for Royal Caribbean. After a long career with this company, it is now time to move on to the next phase of my life. I am excited and nervous for what is to come.' Last month, another cruise crew member lifted the lid on what it's like to work as a member of guest services - and who the happiest employees are on a ship. Posting on Reddit, the employee revealed that their biggest pet peeve is when holidaymakers 'demand' to speak to the manager'. 'Most of these people I would be happy not to have to deal with, however what they fail to realise is that I might get in trouble if I immediately call a supervisor without trying to resolve the issue by myself first,' they explained. 'If seeing the manager is warranted, I promise you won't have to say it.' And luckily it's really pretty easy to keep cruise crew happy, according to the staff member. They said: 'Be nice. That's literally it. We deal with all sorts of entitled complainers. 'Now some, if not most, complaints are perfectly valid but if you're not an a**hole about it, we'll do everything we can. And we will appreciate you being nice to us.' But if you are looking to hit the high seas as a crew member, there's one job that's the most desirable position onboard, according to the cruise worker. They revealed that entertainers are 'by far' the happiest members of staff onboard the ship. The crew member said: 'They have the most time off and are very well paid.'
Auto Express
18 minutes ago
- Auto Express
Car Deal of the Day: Spacious and sophisticated Kia Niro EV for less than £240 per month
Comfortable family SUV Three-year lease deal Only £237 per month The Kia Niro EV might not be the newest electric SUV on the block, but it's very good, offering sophisticated looks, a classy interior, comfortable ride and lots of space. Plus, it can be yours for only £237 per month, thanks to this deal we found through the Auto Express Find A Car service. Advertisement - Article continues below That price is being offered by First Vehicle Leasing, through Auto Express. It's for a three-year lease with an initial payment of £3,149, followed by monthly payments of £237. Included in the offer is an annual allowance of 5,000 miles per year, or you can extend it to 8,000 for less than £20 extra each month. Even though this is the entry-level Niro EV, it still comes equipped with 17-inch alloy wheels, dual 10.25-inch displays, sat-nav, Apple CarPlay and Android Auto connectivity, smart cruise control with stop-and-go functionality, rear parking sensors, a reversing camera and various driver-assistance systems. Every Niro EV features a 65kWh battery that offers up to 285 miles of range and powers a 201bhp fount-mounted electric motor, which can propel the family SUV from 0-62mph in a little under eight seconds. The Kia's 72kW maximum charging speed isn't the fastest we've seen, and as a result, it takes at least 45 minutes to recharge from 10 to 80 per cent battery capacity. Inside, the sharp displays are housed in a single curved panel, below which is the same handy, dual-purpose touch panel as in the Kia EV6. Push one button, and the panel offers either the climate controls or shortcuts for the infotainment system. You also get an impressive 475-litre boot, plus an additional 20 litres of storage space under the bonnet. The Car Deal of the Day selections we make are taken from our own Auto Express Find A Car deals service, which includes the best current offers from car retailers and leasing companies around the UK. Terms and conditions apply, while prices and offers are subject to change and limited availability. If this deal expires, you can find more top Kia Niro EV leasing offers from leading providers on our Kia Niro deals hub page… Check out the Kia Niro EV Deal of the Day or take a look at our previous Car Deal of the Day selection here … Find a car with the experts Toyota GR Corolla hot hatch is on the way to the UK Toyota GR Corolla hot hatch is on the way to the UK The success of the GR Yaris has persuaded Toyota that there's room in its UK range for the high performance Corolla Car Deal of the Day: Blistering BMW M135 for a bargain £301 a month Car Deal of the Day: Blistering BMW M135 for a bargain £301 a month Not many hot hatchbacks are as complete as BMW's recently updated M135. It's our Deal of the Day for 19 June. Car Deal of the Day: a potent 335bhp Volkswagen ID.7 GTX for a rock bottom price Car Deal of the Day: a potent 335bhp Volkswagen ID.7 GTX for a rock bottom price GTX Plus gives some extra punch to an already excellent electric saloon. It's our Deal of the Day for 20 June.
Daily Mail
19 minutes ago
- Daily Mail
Shop owner forced to resort to using horse and cart for deliveries after council set up controversial bus gates
A shop owner has been forced to use a horse and cart for his deliveries due to council-enforced bus gate restrictions. John Ball, owner of Cut Price Carpets in Cambridge, has been using his two-year-old horse Sybil to transport his carpets to customers over the popular Mill Road Bridge. A controversial Traffic Regulation Order (TRO) - approved last October - was introduced on the bridge in March, banning nearly all motor vehicles from using the bridge and leading to the installment of a bus gate. Any owner of an unregistered vehicle found to be crossing the bridge is slapped with a £70 fine, enforced by ANPR cameras, with more than 4,600 fines issued in its first seven weeks. Mr Ball described the new restriction of the city-centre bridge, which has divided locals and caused furious debate, as 'devastating' for his business. Cambridgeshire County Council insists the restriction had been introduced to provide a 'more enjoyable, safer place to visit'. The shopkeeper, who discovered the loophole of using the horse and cart to transport deliveries to the other side of the bridge, remarked: 'they can't fine me'. He added: 'I've been here for 29 years for a reason, because we're good at what we do and we're reasonable - we look after people. 'We've been in the same shop, serving the local community. I'd just love for them to open the bridge back up because it's destroying us little independent businesses.' Mr Ball also revealed that the new restriction on what he described as a 'main arterial road' was having detrimental impacts on other small independent businesses. Adding that the now 'dying road' had simply become a 'rat run' for taxis, who are still permitted to cross the bridge, he said: 'It's just snowballing. The taxis are using it as a cut-through and they're flying up and down there. 'Mill Road is a main arterial road. It's the main high street of Cambridge. But it's just a dying road. 'It's just getting filled up with nothing but takeaways and food-orientated shops. Little independent businesses are very few and far between.' The controversial TRO was approved last year by county councillors, closing the bridge to traffic except buses, pedestrians, cyclists, emergency services, taxis and Blue Badge holders' registered vehicles. It was imposed following consultations that found majority support for the changes, which are designed to improve the road for pedestrians and cyclists, assist the reliability of public transport and aid air quality. Some living nearby believed it will transform the bustling area, which is packed with shops, pubs and restaurants and make it more pleasant to visit, as well as cutting pollution from engines. But opponents argued it increases pollution by creating more congestion in nearby streets, while business owners have warned of catastrophic consequences from collapsing footfall. Protesters also claim a public consultation – in which 52.9 per cent of people supported the Traffic Regulation Order – was not carried out properly. Anyone found to be driving illegally through the bus gate is at risk of being issued a Penalty Charge Notice of £70, discounted to £35 if paid within 21 days. Since the introduction of the restriction, more than 100 fines per day have been issued by the council, a Freedom of Information request submitted by the Local Democracy Reporting Service uncovered earlier this month. Last week, Mr Ball joined the Friends of the Mill Road Bridge 2 campaign group who took their case to the High Court, challenging the council's traffic restriction order which started in March. Their challenge of the TRO rested upon four grounds, including that the council had failed to 'provide legally adequate reasons'. However, the council's lawyers argued the TRO had gone through a proper democratic process and therefore the bus gate was something for council members, not the High Court, to determine. Cambridgeshire County Council spent around £300,000 on a first attempt to impose the bus gate, including £72,000 on a legal challenge that it lost in court. It then immediately relaunched the plan, which was passed by councillors in October last year – prompting the judicial review from Ms Rose on ground including a failure to take into account a petition conducted by Mill Road Traders' Association. But the council went ahead and installed the infrastructure for the bus gate without waiting for the outcome, with building costs coming to another £200,000. Around 60 protesters spent several nights there in November, trying to disrupt work from taking place. In March, vandals damaged the ANPR cameras with paint. Alex Beckett, chairman of the highways and transport committee at Cambridgeshire County Council, previously defended the restriction, stating: Mill Road is the centre of a community. We want it to be a more enjoyable, safer place to visit and to encourage more people to come into the area. 'Reducing motorised through traffic and installing the bus gate will help achieve this. 'What's important is that we now move forward with developing plans for public realm improvements supporting local businesses and allowing Mill Road to thrive.' The outcome of the High Court case is not expected for some weeks.
