Poundland's founder Steve Smith said he would invest in the discount retailer as Business Minister Kate Dearden prepared to meet the firm's board this week. The company faces administration unless it secures a rescue deal by Thursday, threatening up to 12,000 jobs across 600 UK and Ireland stores.
US owner Gordon Brothers, which bought Poundland for £1 last year, stopped funding the business and rejected a takeover offer from Irish firm Martin Property Group. Gordon Brothers said it is evaluating other formal and indicative offers for the business or significant parts of it.
Smith, who founded Poundland in 1990, said he had tried contacting Gordon Brothers for three months without reply. He noted the business reported sales up 11% on the previous year and said it was likely to be profitable this year despite making a loss last year. Smith estimated that collapse would affect 20,000 to 30,000 jobs when including suppliers and downstream retailers.
The BBC understands Dearden's meeting will be predominantly "fact finding" with government sources saying there is limited scope for state intervention in a commercial transaction.
Labour MP Liam Byrne said the company could be saved and called the situation "a going concern" being sold off by an owner trying to "maximize their own profits."
Poundland's board said it had worked on a formal sale process but had not identified an acceptable offer for the whole business. Gordon Brothers said it would evaluate active bids with a view to minimizing uncertainty for staff and stakeholders.