How Poundland grew from a market stall to a high street giant

"When I told people what I wanted to do, open shops on the high street selling things for one pound, they said, 'how will you find products to sell for a pound, what about inflation, it will never work.'"

That is how Steve Smith, the founder of Poundland, describes the genesis of the budget giant - which went on to employ thousands of people and see over a million customers a week - on his own website, external.

But now the West Midlands-based retailer is teetering on the edge, after its US-based owners Gordon Brothers cut off a vital funding supply and rejected a takeover offer from Irish firm Martin Property Group.

Having spent time on his parents stall since the age of two Wolverhampton-born businessman Smith started out in the very same place - selling items for £1 from his own stall.

After a £50,000 loan from his parents he opened the first Poundland shop, in The Octagon Shopping Centre in Burton-upon-Trent, Staffordshire, on 13 December 1990.

That first day, with a range of 624 products, the store took more than £13,000 - "and Poundland was born," Smith said.

Smith and his wife, Tracy, now based in Shropshire, owned the company for 16 years.

In 2006, he decided the time had come and he sold his final shares in the business for £250m, but later said the sale felt it was "as though somebody had died".

Its owner, Polish firm Pepco, confirmed it had sold the brand for a "nominal" sum to US investment firm Gordon Brothers.

At the time Poundland had more than 800 stores across the UK and Ireland and employed around 16,000 staff.

"I did pick up the phone when I heard it was for sale but I was a bit too late," Smith said after the sale.

Now, the retailer's bosses have filed a notice of intention to appoint administrators, which will give the business 10 days to find a rescue deal.