High street discounter Poundland has filed a notice of intention to appoint administrators, threatening the future of around 12,000 workers.
Court filings show that the retailer filed the notice on Thursday afternoon, which gives the business 10 working days of breathing space from creditors to secure a potential rescue deal.
It is understood advisers are still in talks with parties interested in buying the brand and swathes of stores.
Rejected takeover offer
The move comes after owner Gordon Brothers rejected a takeover offer from Irish real estate firm Martin Property Group, which management named as their preferred bidder earlier this month.
Gordon Brothers, which only bought Poundland last year for £1, launched a sale process for the retailer at the start of September.
Impact on stores and staff
Poundland currently runs around 600 stores across the UK.
Poundland managing director Barry Williams told staff in a memo that the situation is “unexpected, unwanted and wholly avoidable”.
