Former Asda boss takes charge of Willenhall-based Poundland

Kevin O'Byrne, who took over from retiring chief executive Jim McCarthy in June, is heading off to be chief financial officer at Sainsbury.

As a result Steinhoff, the South African retail giant that bought Poundland this summer for £610 million, is bringing in former Asda chief executive Andy Bond to run the quid-for-everything chain.

Mr Bond is chief executive of Steinhoff's Pepkor general merchandise business and for the last two years has been launching it's new UK brands, the Guess How Much discount houseware shops and the Pep & Co budget fashion chain, which opened 50 stores in its first year.

And his first move has been to declare that Poundland will be "at the centre of all Pepkor operations in both the UK and Europe"

Aged 51, he was the head of Asda from 2005 to 2010 and led the negotiations for Steinhoff when it launched its takeover bid for Poundland.

He will now take over as executive chairman, running Poundland, at the start of the new year.

Since it was founded back in 1990 by former Willenhall market trader Steve Smith and his father Keith, the company has expanded to around 900 branches and turnover of more than £1 billion a year. It retains its headquarters, next to the Black Country Route at Willenhall, as well as a major warehouse at Bilston, with the two sites employing around 750 people.

The Smiths sold up for £50m in 2002 and for the last 10 years the business was headed by Jim McCarthy, who oversaw its dramatic growth. He turned 60 this year and retired in the summer.

Mr Bond will have to tackle issues created by Poundland's protracted takeover of 99p Stores last year. Delayed by a competition inquiry, the deal revealed trading problems at the newly acquired chain, forcing an accelerated programme to convert them to Poundlands. Combined with the slowdown on the high street it punched a big hole in profits.

In a message to Poundland staff this morning Mr Bond said he would be leading the day-to-day operations of Poundland from January alongside his Pepkor colleague Sean Cardinaal.

"Going forward, Sean will lead the development of our international sourcing as well as the expansion of our business into other countries, taking immediate responsibility for the Dealz business in Spain.

"I also intend to take this opportunity to drive the integration of our other UK businesses into Poundland, making Poundland the clear HQ for our UK operations.

"Sean will take the role of ensuring we fully maximise any benefits we can gain from PEP&CO and GHM! into our business as well as ensuring our HR, IT and supply chain functions are shared to leverage benefits.

"These changes will put Poundland at the centre of all Pepkor operations in both the UK and Europe.

"Together with the recently announced additions to the Poundland board of Roy Ellis, Barry Williams and Tim Goalen, we are now in a much stronger position to develop and grow Poundland as part of a very strong Steinhoff business."

Departing chief executive Kevin O'Byrne said: "Although my time at Poundland has been short it has been very enjoyable.

"Poundland is a much loved brand. I have been impressed with the passion of the whole team and their campaigning zeal to offer amazing value to seven million customers every week.

"I am delighted that the board has been strengthened with the addition of four new directors and I am sure the business, now part of the very successful Steinhoff group, will go from strength to strength under Andy Bond's leadership."

His move to Sainsbury comes after CFO John Rogers took over as chief executive of Sainsbury's Argos, following Sainsbury's successful acquisition of Home Retail Group in September 2016.