Gordon Brothers, the US owner of Poundland, has described the high street chain as remaining "challenged and vulnerable" following discussions with ministers, amid Government criticism over its stewardship of the retailer.
In a statement on Thursday morning, Gordon Brothers confirmed it remains in "active discussions" with potential buyers and has been working to "protect as many jobs as possible".
The statement follows Poundland's filing of a notice of intention to appoint administrators last week, placing the futures of approximately 11,000 employees in jeopardy.
Sale process under pressure
Gordon Brothers, which acquired Poundland last year for £1 and initiated a sale process at the beginning of September, faces mounting pressure to accept a bid that would rescue the retailer. The company stands on the brink of collapse despite having received solvent takeover proposals.
Last week, the owners lodged a notice of intention to appoint administrators, granting the business a 10-working-day reprieve from creditors to secure a potential rescue agreement before potentially sliding into insolvency.
Advisers remain in negotiations with parties expressing interest in acquiring the brand and substantial numbers of stores, some two months since the sale process commenced.
Owner defends its efforts
A spokeswoman for Gordon Brothers said: "We are pursuing all avenues through the sale process to find a solution which protects as many jobs as possible and preserves value."
"Work continues at pace, engaging in active discussions on offers with interested parties.
"When Gordon Brothers acquired the business, it was in distress and required a radical restructure, urgent operational change and significant funding, which we provided to support the company's ability to trade.
"In spite of our efforts and the tremendous efforts of management to deliver a turnaround, the business remains challenged and vulnerable to any potential downturn in future trading.
"Our intent throughout the comprehensive sale process has been to protect as many jobs as possible and preserve value in order to deliver the best available outcome for the people, creditors and local communities who care about this business as much as we do."
Government calls for practical solution
On Wednesday, representatives from Gordon Brothers and Midlands-based Poundland held separate discussions with Government ministers concerning the retailer's future.
Prime Minister Andy Burnham stated the owners must identify a "practical solution" to maintain store operations and safeguard employment.
When questioned about his message to Poundland's leadership, Mr Burnham said: "Focus on the people in your employment.
"Meet with the Business Secretary because we are setting up that meeting. Come up with a practical solution that saves jobs and saves those stores because many of them are viable propositions.
"They're on high streets. They matter in our communities. There is a solution to be found here. Sit down with us and let's find it."
He confirmed the Government stood "prepared to find what we can do" to assist in preserving the chain.
