Poundland files to call in administrators with 12,000 jobs at risk after the owner that paid £1 rejected a rescue

Gordon Brothers — the US investment firm that bought Poundland for just £1 last June — blocked the one bidder willing to take on the 600-store chain as a going concern, demanding full repayment of a £30 million shareholder loan that the offer did not cover. Managing director Barry Williams wrote to all 12,000 staff warning that the collapse was "unexpected, unwanted and wholly avoidable," as Business Secretary Jonathan Reynolds demanded an explanation from Gordon Brothers in writing. The filing gives Poundland 10 working days of breathing space from creditors while AlixPartners oversees a last-ditch rescue attempt.

Three restructuring directors quit in protest after just two weeks in post, angered by Gordon Brothers' refusal of the Martin Property Group bid.

Billionaire 'Del Boy' retail magnate Chris Dawson, along with Poundstretcher owner Fortress and B&M, is among those eyeing a breakup purchase of parts of the chain.

Major suppliers are already halting deliveries over fears they will not be paid, deepening the crisis weeks before Christmas.