Poundland prepares to call in administrators, putting 12,000 jobs at risk after its US owner rejected a rescue bid

Poundland's directors are preparing to file for administration at the High Court as soon as Wednesday evening, after US owner Gordon Brothers rejected a solvent rescue bid from Irish firm Martin Property Group over a row about a £30m loan. Business secretary Jonathan Reynolds has written to Gordon Brothers demanding answers, while union Usdaw warns that 12,000 workers could lose their jobs before Christmas. Managing director Barry Williams told staff the collapse was "unexpected, unwanted and wholly avoidable."

Gordon Brothers bought Poundland for £1 last year but refused Martin Property Group's offer, calculating that the £30m loan stands a better chance of being recovered if the chain is wound down rather than sold as a going concern.

Should administration proceed, retailers said to be looking at picking up stores from the 600-strong estate include Lidl, Iceland, B&M, The Range and Poundstretcher.

Administration would trigger a 10-day creditor moratorium — a short window in which a rescue buyer could still emerge.