Poundland is poised to call in administrators, putting 12,000 jobs at risk, after its owners rejected a rescue bid

Three directors overseeing Poundland's sale are set to quit after majority owner Gordon Brothers rejected a solvent bid and steered the chain toward insolvency, threatening thousands of jobs.

American investment firm Gordon Brothers is set to appoint administrators to Poundland — a step its own chief executive Barry Williams called "unexpected, unwanted and wholly avoidable." The firm turned down a solvent rescue offer from Irish company Martin Property Group over a dispute about a £30m loan, prompting three independent directors to resign. Business secretary Jonathan Reynolds has since written to Gordon Brothers demanding an explanation.

Five rival retailers — Lidl, Iceland, B&M, The Range and Poundstretcher — are circling the chain's 600 stores, raising fears that Poundland will be broken up rather than kept together as a going concern.

Workers' union Usdaw warned that staff could lose their jobs 'before Christmas in the coming days' — including some employed in the Prime Minister's own constituency.

Gordon Brothers acquired Poundland for £1 last year, having pledged to turn the business around; an administration filing would open a 10-day window in which buyers could come forward.

The TelegraphThousands of jobs at risk as Poundland prepares for administration City A.M.Jobs on the line as Poundland poised to appoint administrators The SunPoundland 'prepares for administration' in 'wholly avoidable & unexpected' move The TelegraphPoundland bosses seek legal advice after owner withdraws funding The GuardianBusiness secretary writes to Poundland owner as administration fears build Daily MailGovernment probes Poundland crisis amid outrage at owners MetroPoundland could collapse 'within days' putting thousands of jobs under threat The SunOver 12,000 jobs at risk as Poundland on edge of COLLAPSE after directors quit Evening StandardPoundland could be broken up and face insolvency as bids assessed Irish IndependentThousands of UK high street jobs at risk as Poundland emergency sale process falters

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