The owners of high street discount retailer Poundland are set to file a notice to appoint administrators, putting 12,000 jobs and hundreds of stores at risk, according to reports.
Its chief executive and finance director are set to make the submission to the High Court imminently, The Telegraph reports. The move would trigger a 10-day moratorium which automatically prevents creditors from calling in their debts. This would give its owners a final opportunity to save as many stores and jobs as possible.
Survival doubts and insolvency plans
However, sources close to the negotiations cast doubt on Poundland surviving in its current form, The Telegraph reports. The consulting firm AlixPartners is expected to handle any insolvency if the last-gasp survival attempt fails.
CEO Barry Williams has reportedly issued a letter to Poundland's 12,000 employees describing the move as "unexpected, unwanted and wholly avoidable".
It reportedly said: "I'm disappointed to have to tell you that Gordon Brothers have restricted access to funds that we would in normal circumstances expect to access fully under our existing loan agreement."
Recent acquisition and board resignations
The struggling chain was only bought by US investment firm Gordon Brothers for £1 last year. If it does collapse it would be one of the biggest casualties on the high street in recent times.
Earlier this week, Sky News reported that Poundland was only days away from collapsing after three board members resigned. The chain has 600 stores across the UK.
Interest from rival brands
Rival brands, including B&M, Poundstretcher, Iceland and The Range have expressed interest in buying a number of the stores.
