Poundland's future hangs in the balance as chain edges towards collapse

Poundland’s future is in doubt as the chain moves closer to collapse.

The BBC understands that Poundland’s bosses have filed a notice of intention to appoint administrators to the business, heightening concerns that it could fail.

The legal step, which still needs High Court approval, gives the company 10 days of breathing room to secure a rescue deal.

In a memo sent on Tuesday to his 12,000 staff, Poundland managing director Barry Williams said the chain’s American owner had restricted its access to funding.

Gordon Brothers bought the struggling Poundland from the Polish retail group Pepco last year for a nominal £1.