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Too late for a comeback as Poundland owner tried to repurchase the retailer

Poundland founder Steve Smith has revealed he attempted to repurchase the discount retailer when it was recently put up for sale but was "a bit too late". Smith, who launched the first store in 1990 and sold his stake in 2006 for £250 million, told BBC News he remained passionate about the brand and its original concept.

© Craig Russell | Dreamstime

The discount chain was sold last week by Pepco Group to US investor Gordon Brothers, which plans to invest £80 million to revive the struggling business. Poundland has been hit by falling sales and profits and is now seeking approval to close 68 stores while negotiating rent reductions on over 100 more.

The retailer has pledged to return to its roots by focusing on value and restoring its £1 price point, which had been diluted in recent years as it expanded its product range.

Smith noted he would have adjusted the price point but maintained the core model, stating: 'It's still a one price concept, that's what customers loved.' He added the business also needs "new systems" and strong supplier support to recover sustainably.

Source: www.retailgazette.co.uk

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