Poundland closer to collapse as it files notice to appoint administrators

Poundland has filed notice to appoint administrators, bringing it one step closer to collapse.

The discount chain employs more than 10,000 people and trades from roughly 600 sites.

The latest move is one step below bringing in administrators and gives the retailer a short legal window in which to reach a deal.

A statement from Poundland said the move was made, "in order to bring stability".

The notice brings about an immediate 10-working-day legal moratorium during which Poundland said it will be "working closely with our advisors to identify and deliver the best possible outcome".

It added: "Our stores remain open as normal and we thank our staff, suppliers and customers for their continued support."

Poundland had been working on a formal sale but said "despite enormous efforts it has not been possible to identify an acceptable offer for the business as a whole".

"The process has however attracted several established retail operators who have made formal offers, collectively these cover a significant part of the business, and we believe offer the best available prospects for shareholders, creditors and to preserve jobs," it said.

Sky News revealed back in August that Gordon Brothers, Poundland's owner for just 14 months at that time, had appointed professional services firm Alvarez & Marsal to oversee an auction of the business.

The US investment firm had paid just a nominal sum of €1 for Poundland in June 2025, in a deal that promised up to £80m in new funding but cut around 200 underperforming stores.

Poundland has been suffering the effects of rising costs - particularly for wages and employer national insurance contributions - and strong competition.

But it emerged earlier this week that the retailer had moved closer to being broken up after a proposal for a solvent sale of the business was dismissed.

Reporting in The Guardian newspaper on Wednesday evening said the business secretary's team wrote to the Poundland ‌owner seeking updates amid fears that a collapse could put 12,000 jobs at risk.

"We recognise any sale process creates uncertainty and particularly when set against a challenging UK economic environment. We thank all stakeholders, and in particular our people for their support during this period," the Poundland statement said on Thursday.

(c) Sky News 2026: Poundland closer to collapse as it files notice to appoint administrators