it would rank among the largest UK retail failures in recent years.
Poundland is on the brink of collapse, putting thousands of jobs at risk.
It comes as the directors recruited to steer the high street retailer through its emergency sale process less than two weeks ago are on the verge of resigning.
It is reported that Andrew Kirkpatrick, Stephen Welch and Dominic Young are expected to quit the board following disagreements with majority owner Gordon Brothers over its decision not to accept a solvent offer for the business from Martin Property Group.
The dispute has heightened the risk of Poundland being broken up through insolvency proceedings, potentially putting thousands of jobs at risk.
A filing for administration could come within hours of John Healey’s inaugural budget as Chancellor of the Exchequer, dealing a significant blow to the government as it attempts to project a positive economic outlook amid mounting fiscal pressures.
However, sources told Sky News the possibility of a rescue deal had not been entirely ruled out, with hopes potentially revived if a revised offer for the retailer was submitted within the next 48 hours.
The three directors were appointed to the Poundland board on October 15.
The trio had expressed concern over what appeared to be attempts by Gordon Brothers to steer Poundland towards insolvency, despite the availability of offers to keep the business operating as a solvent company.
Martin Property Group’s proposal includes preserving a distribution centre in Andy Burnham’s Makerfield constituency.
Meanwhile, The Telegraph reported that Irish company Innovest Holdings was also pursuing a solvent bid, although questions remained over the extent of its funding on Tuesday morning.
If Poundland collapses, it would rank among the largest UK retail failures in recent years.
The West Midlands-headquartered chain employs more than 10,000 people and operates approximately 600 stores across the UK and Ireland, making it one of Britain’s biggest discount retailers.
Gordon Brothers, which took control of Poundland in the summer of 2025, is understood to believe it has a greater chance of recovering a £30m shareholder loan in full if the business is broken up.
The investment firm paid just £1 for the loan, which is not due to mature for several more years.
Martin Property Group is understood to have proposed repaying the £30m in full under the existing terms.
However, Gordon Brothers has reportedly expressed concern that Poundland could be liquidated before the loan’s maturity date, potentially affecting its ability to recover the money.
Several retailers, including rival Poundstretcher, B&M, Iceland and The Range, have reportedly expressed interest in acquiring varying numbers of Poundland stores, raising the prospect of the business being divided between multiple buyers rather than sold as a going concern.
Professional services firm Alvarez & Marsal (A&M) has been overseeing the sale process since the summer, although it remains unclear whether it would be appointed administrator if Poundland enters insolvency proceedings.
Poundland’s management team had identified Martin Property Group as its preferred partner, prompting Gordon Brothers to appoint the three directors as independent board members “bringing additional M&A transaction and industry experience”.
Despite a store closure programme following its sale last year, Poundland remains one of the UK’s largest general merchandise retailers.
Its total estate, including its Irish operations, comprises between 550 and 600 outlets.
The retailer has struggled for several years amid persistent inflation and changes to its product mix, which have contributed to shoppers turning to competing chains.
At the start of the sale process, the Gordon Brothers wanted to agree a deal by the end of October.
However, recent sales figures suggested Poundland’s performance started to improve under its new ownership, with a revamped store format reportedly delivering positive results.
The improved figures have raised questions among some observers about whether appointing administrators is necessary, particularly while potential buyers remain interested in acquiring the business.
A spokesperson for Gordon Brothers said: “As well as interest from buyers for the whole business, the sale process has also surfaced a number of formal and indicative offers for significant viable parts of the business from established retail operators.
“These options will now be objectively evaluated, with a view to minimising uncertainty for Poundland’s people and all relevant stakeholders.”
