Barclays show an interest in Poundland

The business investment arm of Barclays is said to have expressed an interest in buying Willenhall-based Poundland for around £200 million.

Poundland's owners, Advent International, are currently looking at its options for the 264-strong chain, which includes finding a possible buyer.

They declined to comment on the reports today, which suggest that as well as Barclays Private Equity other, unnamed, private investment groups are circling the Black Country retail success story.

Poundland has performed strongly in the recession, earning around £20m last year.

It was started 20 years ago by former Wolverhampton market traders Steve Smith and his father Keith.

They sold up in 2002 to a £50m management buyout backed by private investment group Advent, who installed former Sainsbury's executive Jim McCarthy as boss in 2006.

Since then growth has been constant, with sales likely to hit around £550m for the current financial year.

As well as its stores estate, the company employs nearly 640 people at its Willenhall headquarters and warehouse centre in Bilston.