Poundland is poised to call in administrators, putting 12,000 jobs at risk after its US owner 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.

Poundland's board is set to lodge a notice with the High Court to install New York consultancy AlixPartners as administrator, with the filing potentially happening as early as Wednesday evening. Gordon Brothers, the US owner, turned down a rescue offer from Irish firm Martin Property Group even though Poundland's own management had backed the deal. Business secretary Jonathan Reynolds has written to Gordon Brothers directly to demand an explanation, and shop workers' union Usdaw has warned that thousands of employees could lose their jobs before Christmas.

Poundland boss Barry Williams described the collapse as 'unexpected, unwanted and wholly avoidable' in a letter to staff.

Lidl, Iceland, B&M, The Range and Poundstretcher are all weighing up opportunities to acquire stores should Poundland be broken up.

Gordon Brothers, which acquired the 600-store chain for just £1 last year, is withholding the funds required to keep the business operational.

City A.M.Jobs on the line as Poundland poised to appoint administrators The TelegraphThousands of jobs at risk as Poundland prepares for administration 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 MetroPoundland could collapse 'within days' putting thousands of jobs under threat Daily MailGovernment probes Poundland crisis amid outrage at owners 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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