Discount chain Poundland could be broken up and sold off after the firm said it would call in administrators following the rejection of a rescue deal by its US owners.

Up to 12,000 jobs could be at risk after the budget retailer, owned by investment firm Gordon Brothers, filed a notice of intention to appoint administrators at the High Court today. The move will give it ten days of breathing space to find new buyers.

Poundland was set to be sold to Martin Property Group in a deal backed by store bosses, but talks collapsed after Gordon Brothers insisted it shoulder a £30million loan inherited when it bought the chain for a nominal sum of £1 in June 2025.

In a statement, Poundland suggested the chain would now instead be broken up and sold off after receiving formal offers from 'several established retail operators' that cover a 'significant part of the business'.

A civil war is brewing between Gordon Brothers and shop bosses, however, amid claims the US firm cut off a vital source of day-to-day cash after the deal fell through – while unions claim the company was 'determined' to let Poundland fall into disarray.

Business Secretary Jonathan Reynolds has demanded an explanation from Gordon Brothers, telling the BBC: 'If there is a potential owner that can continue that progress, obviously that naturally sounds like the best way forward. So if that hasn't been accepted, I want to know why that is the case.'

The 'incredibly distressing' threat of collapse comes one day after Chancellor John Healey pledged 'support good growth on every high street' in his inaugural Budget.

Any break-up of the firm is likely to result in the closure of some stores and the loss of jobs. Poundstretcher, B&M, Lidl, TG Jones owner Modella and retail magnate Chris Dawson – of The Range – are said to be interested in a slice of the Poundland pie.

'Despite enormous efforts, it has not been possible to identify an acceptable offer for the business as a whole,' Poundland said in a statement today.

'The filing of the NOI (notice of intention) creates an immediate 10-working-day legal moratorium during which we will be working closely with our advisors to identify and deliver the best possible outcome.

'Our stores remain open as normal and we thank our staff, suppliers and customers for their continued support.'

Bally Auluk, of shopworkers' union Usdaw, said: 'It has been an incredibly distressing week for Poundland staff who have had to watch from the sidelines as a multi-billion pound company jeopardises their livelihoods as it tries to extract £30m from a business it bought for £1.

'We are urging Gordon Brothers to reconsider and to prioritise a unified buyer who will protect the livelihoods of 11,000 people.'

Poundland, which dropped its 'where everything's £1' slogan in 2019 as economic factors made the promise unsustainable, operates 600 stores and two distribution centres, one of which sits in Andy Burnham's Makerfield constituency. 

It closed more than 100 stores and two warehouses in South Yorkshire and the West Midlands after the Gordon Brothers takeover last year – when the US investment firm ironically snapped it up for a nominal one euro or, near as makes no difference, £1. 

The retail chain then reported a £85million pre-tax loss in the year to September 2025 but had, Gordon Brothers maintains, been on the road to profitability in 2026. 

But the investment firm's refusal to accept the preferred offer has sparked friction – with Poundland's upper management rounding on their paymasters.

Managing director Barry Williams revealed to staff that the owners had cut off access to cash for day-to-day operations, and said the failure of the Martin deal had been 'unexpected, unwanted and wholly avoidable'.

He added: 'As you all know, our sales are strong and our recovery is taking root. This business simply does not deserve to go into any kind of administration.'

Three directors appointed just two weeks ago to oversee a potential sale quit in protest after the deal fell through, while suppliers have threatened to cut Poundland off amid concerns they would not be paid, Sky News reported.

Multiple reports suggest advisers from AlixPartners are primed to guide the company through the administration process. 

A spokesman for Gordon Brothers previously said it had been approached with 'a number of formal and indicative offers' for 'significant viable parts of the business'.

Chris Dawson, who made his fortune with The Range chain of homeware stores, has become a more recent saviour of ailing British brands, snapping up Wilko and chunks of Homebase as both faced total collapse and consignment to the history books.

The 74-year-old is known as the 'Del Boy Billionaire', having started out as a market trader in Plymouth, not unlike David Jason's wheeler dealer in Only Fools and Horses.

But he has enjoyed markedly more success than his fictional counterpart – despite suffering from dyslexia. He cannot write, and only learned to read at the age of 27. In the age of email, he prefers to do business direct, or over the phone.

His approach has paid dividends: rather than a rusting Reliant Regal, Mr Dawson drives around in a yellow Lamborghini Urus super-SUV with the personalised number plate DE11 BOY. The plate has also lived on a Rolls-Royce and a Bentley in the past.

Another plate, DAW50N, is currently attached to a bright orange Lamborghini Revuelto, while the billionaire is also known to have owned Range Rovers and a Ferrari 458 with a flashy paint job inspired by the Italian flag. 

Mr Dawson is also famed for flying around in a Range-branded helicopter in order to visit his stores personally. 

He opened his first CDS Superstore – later renamed The Range – in Plymouth in 1989  and has openly likened his stores to 'a poor man's John Lewis', once telling the Telegraph: 'As each person comes in, I think: 'Kerching, kerching, kerching!''

That hasn't stopped it attracting well-heeled customers - The Duchess of Cambridge was seen doing last-minute Christmas shopping at the King's Lynn branch near Norfolk in 2018.

In 2023, Dawson bought the rights to Wilko for £5million after the homeware chain collapsed, initially turning it into a web-only retailer before opening a handful of physical stores and 200 click-and-collect points across the country.

A year later he would do the same with Homebase, spending £30million on buying brand rights and 70 of its stores in a pre-pack deal. The brick-and-mortar shops were rebranded as The Range while the Homebase name has moved online.

He is thought to have saved millions of pounds in tax by handing control of his businesses to his wife Sarah, who resides in Jersey and is the controlling party of parent firm Norton Group Holdings.

According to The Sunday Times Rich List, the couple are worth a combined £2.65billion.

Poundland, Gordon Brothers and AlixPartners were contacted for comment.