GRAHAM HISCOTT Poundland of opportunity.. Founder eyes possible Poundworld rescue

THE founder of Poundland is in talks to buy stricken rival Poundworld.

Former market trader Steve Smith has kicked off negotiations with Poundworld’s administrators Deloitte.

Smith declined to comment but sources said talks were at a “very early stage”.

However, it raises hope for Poundworld, which went bust last month putting more than 5,000 jobs at risk.

Smith sold his stake in Poundland in 2002 for a reported £50million. The latest news came as Poundworld founder Chris Edwards pulled out of the running to rescue the troubled chain.

Talks with Deloitte about saving 186 stores, and 3,000 jobs, stalled after the two sides couldn’t agree a deal.

Edwards, who like Smith started out on a market stall, had a dig at Deloitte.

He said: “You have to consider the moral argument in this and the fact that people’s livelihoods are on the line – and clearly to some people it appears that doesn’t matter.

“Instead it seems that selling off all the stock and closing the stores is a better option.

“The amount of extra money the administrator is holding out for is a drop in the ocean when you consider how much money will be needed to stabilise the business and replenish stock levels, which is where the real costs will be incurred, and that’s why we can’t increase our offer.”

Deloitte is still in talks with a number of bidders in the hope of selling part of the business.

It must first seek to sell the firm as a going concern and, failing that, achieve a better deal for creditors than they would secure by selling off Poundworld’s property. graham.hiscott@mirror.co.uk @grahamhiscott 020 7293 3030

TALKS Founder Steve Smith